I love making paths be as straight as possible, so I recommend a long straight path down the left of town hal, maybe move the bridge to match up with it? idk if you really liked that house in the total south, but it would have to go, or work around it!
for your paths also think about where you want bridges first as its a crucial part of controlling the flow of your paths... then think about the style you want to go for. a meandering path or like a structured path system (I prefer the path system you can check out my DA for Riften for that)
for villagers I like to space mine out (tried grouping cats together, didn't work, I hated it) you can fit 3 below your house, two could fit in the bottom right corner, one in top left and another across the river... one maybe below the plaza, one left of town hall (line up with campsite too?), one beside retail or like by the bend in the river