The general store is Catarina's shop, it is in the pier, you can click her portrait (redhead catgirl) to get a guidance line to her
You need to click Apply to save the changes in the outfit color or it reverts back to default
You can make your farm anywhere, the tutorial guides you to a spot inside the town, but you can do it outside.
There is no pickaxe or axe for now, you have to use the placeholder gathering cart for now. We will replace this placeholder during the exploration update.
The grass takes a week to grow back, if it is not being cut in your screen it is a bug, what is your GPU?
Events and festivals will come with the NPC AI overhaul, it is planned.
To get wild seeds use the Sickle, not the Scythe, one if got harvesting, the other is clearing
We will not shrink the town, in fact it will be even larger one day, but there will be more NPCs and things to do inside it. Also the map will be expanded so you will be able to just live away from the town if you want to play a hermit.