I personally like putting my house near the cliffs, so I can hear the ocean. Basically, if you can hear the waves from where you're standing with Nook, you can hear them inside your house. Same goes for the waterfall, actually.
That's a really nice idea! Is there a spot on my map that you think would be a good spot for enough room for gardening but not so much that villagers would mess up my house area?
If I were you, I'd put my house on the tip of the east peninsula. It feels like an aesthetic location, and lends and air of importance to the house. Sort of says, "I live in isolation from you, animal plebeians, because I am your emperor and lord! Bow before my might!"
I think the house would look a bit awkward in front of the train station like that, but that's just my opinion. I'd say down from Re-Tail closer to the river, maybe? I dunno. it's not my kinda map, so it's hard for me to make a suggestion.
I also like that area. I'd place it just a little closer to the river. In fact, I always place my houses in front of a river. You don't want to leave room for a villager to plop a house down in front of yours!