I would like to enter! I visited your dream town and here's what I think:
Home improvements: Having at least a few things in the spare house might look good. As for the main house, I think that the attic room would benefit with something filling that space in the middle, maybe one of the statues if you've already got it in the museum, and a different flooring.
Does path work with town? Yes, but the water looking path blocking one of the bridges doesn't.
Locations where flowers should/could be: See my PWP suggestion.
Any suggestions for PWPs?: I think the town could benefit from having a zen bell. There's an empty space in the bottom right corner where it would fit perfectly (it looks like a house used to be there), maybe surrounded by white and blue roses. There's not enough of that color combination in the town.
One thing you like about my town: I like the use of the PWPs you have and how they fit into the theme of the town and the dream's choice of relaxing music.
Also I love Sableye and I can't say I have a favorite color.