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the fairytale theme would definitely be something very cute!
but forest theme is also very nice and seems natural and peaceful c:
although, in my opinion, the fairytale theme is very adorable! and i would definitely go with it!
I think both would be amazing! I like the forest theme the best I think because you could do a lot with the town. Adding like a clover path and pwp like the hot spring and flower pwps! If I had the nerve to reset I would plan everything out. With my original town I didn't plan anything but it still looks food in my opinion!
Both can be done well. I actually have two towns, and one will be more fairy tale/magical and the other is very much a forest town. Not sure I fall into the "done well" category, but I hope to one day.
You could have a forest background with trees and natural paths but you can have fairy themed PWPs and buildings. Kind of like it's a hidden fairy hideaway deep in the woods.
I say go for fairytale forest, combining the two themes. With densely packed trees and the candy house from Hansel and Greta and Red Riding Hood's grandmother's house, there are many possibilities to use!
both! that's what my town currently is shaping up to be. i don't think a town has to be one set theme all throughout and by doing both you can have like an enchanted forest type of town like mine