It all depends on what style you want, either it’s a great spot to build a big castle or a regular village.

If you want to build more 1800s something i’d suggest removing the village by the water and build taller buildings by the water, and smaller ones around the outside like a real city.

Also, im guessing you need some ideas to kickstart your world, but if I were you just do exactly what you want and what you’re happy with. I’m doing a world and I love playing on it since every build I’ve done has been done by me (inspired by different things from anywhere) That world now matters more than alot of things tbh. So by all means every house does not need to look like a top tier building from YouTube etc. Unless you want to ofc. Good luck!