True, I do think is is strange that Nintendo can give us large and expansive dungeons, forests, temples, and even other worlds to discover and explore. With secrets hidden at every turn and passages throughout. But when it comes to villages and towns we are normally left with one or two frame areas that are very straightforward and as EternamNoctourne said,
I'd be perfectly content with the Castle Town in SS no matter how it looks as long as it doesn't have a set camera. Honestly, in both OoT and TP, Castle Town had an annoying set camera. >_< I'd like it so much better if SS let you actually explore the town with a regular Zelda-camera view.
A fixed camera. The inability to see and interact with everything in Castletown in two separate games drives me crazy. When normally a place as large, old, and populated as Hyrule Castletown should have something to see and do at every corner. If there were any place in all of Hyrule that should always have something new for Link to do every single time he returns throughout the game it should be the largest and most populated city in the country.
Other than the normal shop or two and couple homes found in each game, it should have all the other things commonly associated with a large medieval city. A richer noble area with large homes and people perfectly willing to hire Link to do random tasks, or secrets hidden in the houses. A slum complete with gangs, shacks, black markets, thief dens, run down taverns and all the colorful NPC's that would be expected of such an area. Maybe a few poor unfortunate citizens Link could help out or donate to. and maybe something like a foreign quarter of town where immigrant Gorons, Zora, or Gerudo would stay. They could be important to helping Link gaining access to their villages in other regions of Hyrule. Or gaining trust among the tribes of Hyrule.
Anyway, Nintendo should definitely do a little more work in making the capital of Hyrule the ancient, mysterious, and magical cultural center of Hylian civilization it is supposed to be. And be every bit as impressive as the land it governs. Castle Town should be focal point where most sidequests originate and end up.