Its nice to hear that anyone out there has any interest in a sequel to the Pixel Town game I made so long ago. I did start playing around with making a low poly version of it a while back but didn't get very far. I was struggling to come up with anything to give enough of a twist on the classic City builder mechanics that can be found already done better in games like Caesar 4, Sim city, etc. to make it seem worthwhile. But who knows maybe one day. I do feel slightly tempted to try making a low poly version of this game now though .
I don’t think an improvement to Pixel Town would be related to its graphics. The only problems that game has are 1) the monster generators can be easily eliminated or walled away and no more ones appear, and 2) you get to the city population limit and the game is finished. I’d address the first one the same way you did here: when you mine to build something, it is possible you step into another monster generator, which would add new stress… should I extend the city and risk its inhabitants or not? The second one should just disappear, IMHO.