Not sure exactly why, but I’ve only seen freaking huge cities in v0.3, like the one xara posted above. Personally I prefer small townships and villages. ideally I think small towns should have say, a supermarket, liquor, hardware stores and gas station as a bare minimum.
Anything larger, add a few more of those stores bar gas station, then add in a library and electronics store.
Would be nice if we had like, stopovers for highways too-- far away from any towns or villages, a small motel (probably with some zombified loons about) with a few parking lots, a gas station and a restraunt or two. Would be a nice place to encounter some survivor NPCs too.