OK, I finally had time to look into it and I tend to agree that villages requested as "large" + "dense" end up being quite small too often. Such cases don't look like bugs, more like undesirable results caused by unfortunate combination of randomly chosen parameters. In the next update this will be fixed this way or another.
Thanks for looking into it Watabou. I'm glad you were able to confirm the undesirable behavior.
I'm not sure how the changes you make may affect things, so this may be a moot point, but since you're working on that section anyway, if it's possible to add maybe an "XL" tag as a way to generate very large "town-sized" villages (similar to previous results), that would be greatly appreciated.
Either way, looking forward to the next update and thank you for all your work!