I created a tree model in Blender with a shape key that allows for the foliage to be scaled, then connected code that will randomly choose on this scale, along with the width and height of the tree. This allows for more variety at runtime even with just one tree model. I plan to make other trees that can be changed in this way. Below you can see some examples of before and after running the script.
I have also added these trees in to be randomly distributed across the town, along with some lamp posts on corners. I plan to make some more decorative elements like benches and a park that will randomly spawn for a more unique town.
Another element that should be noticeable is the wooden appearance of the models now. I made a wood texture and normal using Blender. It combined a noise texture with some distortion, colour mixing and scaling to get the natural lines of the wood. It has worked well with the village and makes it look more natural, however some areas now seem darker because of it so I may have to consider how I light the scene, which is partially why I added in lamp posts. The addition of lights could also mean that a day and night cycle would look better if I decide to implement that. I learned about making PCG textures with a noise map from this video [Link].
The concept for my town is that a parent made their child a wooden town for their child to play with, using their stuffed toys. However, I was considering seeing what the town would look like using uniformly sized wooden blocks that kids play with so I will attempt that next to see the result. After that I need to start having my toys walk around the town following a path along the pavement which will make the town feel more populated.