You might run into a problem of lack of content. Because, what can you have in a medieval village? Plots of land, houses, exactly one inn, exactly one church/shrine, exactly one mill, maybe some blacksmiths and other artisans (but not too many since these goods are taken from a city in exachange for the food). It would be very difficult to design...
In the time period this game is taking place...there very few cities, most regions were mostly self-reliant since trade and travel had nearly died out. Like mentioned in the text:
While constructing and planning the settlement is a major aspect of the game, the greatest challenge for the player will be managing his estate. This is done by optimal people management skills and squeezing the maximum potential out of the land and your peasants. If the player fails to properly run his estate, the settlement will fall prey to various dangers such as peasant rebellions or famine and should the player character, the lord, die either from hunger or be killed in a rebellion the game ends.
While the whole constructing is one feature of it and certainly one that should be enjoyable, the main focus is placed on the management of the fief/estate. Fail to do so and harvest will fail, your home will fall in disrepair, ... generally bad things will happen if you rule the land without any care. You yourself have little control what your peasants are going to do for a living on their own. They just take up their land tenure and start living their lives, the only impact you have on them is deciding what their obligation is towards you yearly for that tenure (most often help harvest crops on your land during harvest season).
However, the feudal contracts also forces you to uphold many obligations such as protecting them from any harm such as famine. As feudal lord you are obligated to offer relief during times of famine. You will have a choice there: will you give them food or not? Doing so, will make it harsher on your family, but refusing to do so might cause a rebellion that might cause a game over, or kill many of your subjects, subjects that are not easy to replace. You will also have to protect them from exterior threats such as bandits or Norse raiders.
And finally, you will have to ensure that your land will be productive enough so that you will be able to uphold your duties as a vasal to your liege for every year you too will have to pay tribute, failing to do so will also cause a game over.
While village/city-building is the genre, like most their is a strong management aspect to the game and most of the focus will be spent here. Secondly I am not aiming for a big game... I am doing this on my own, you know.