Ok, first off I have to say it's a beautiful, calm, zen town.
I love the cherry blossoms, it adds to the zen feeling.
I agree about the flag, I personally don't like it, and it doesn't fit in.
I get what you're going for with the wind turbine, cuz of the outdoor chair next to it. I'm not a big fan of the wind turbine either though, so I guess it just depends on how badly you want one in your town.
There's a long stretch of land between Fauna (<3 btw) and Rosie's houses...good place for the one of those zen pwp's.
I also don't like the trees right in front of the bridge next to Rosie's...it's kind of awkward to go around them.
To the right of that, where the apple orchard is, I'd put the zen bell, close to the river. You'd have to take down some apple trees, but there's already a lot of them. I wonder if you could squeeze it in in front of the rock, where the 2 trees are...but Isabelle is a jerk...so maybe not. I'd try though. Or even a little to the left of that, before the cedar trees start.
I looove the topiaries and the Cafe. I want to go there IRL.
Behind Fang's house, there's room for a pwp...maybe zen clock??
I like the park a lot, but the jungle gym and balloon arches were a little surprising...not sure about them.
A couple of zen lamps would be nice in the park.
And...I love the hybrids on the beach, cuz mine's the same. lol
Great job, though! I love dreaming of people's towns, and it was one of the best ones I've seen. Very neat and well thought out.