Since four towns have been accessed in Paladin’s Quest, I think it might be interesting to compare the art for them.
The building style in the magic school is both fancier than the Guud Village and less technologically advanced than the Tower of Gabnid. This helps make the Tower of Gabnid feel alien compared to the style of the Magic school.
The third town is the Skuruu camp. This is a migratory flying town used by the winged Skuruu people to follow the purpbird flocks.
The final town is Hagudo. It is a town inhabited by the Godom race, and has a mine.
Plotwise, some monster named Jarmlu seemed to mutate and gather all the purpbird to Mt. Denobra. This seems to have been caused by releasing Dal Gren. The hero and Midia agree to help the Skuruu camp find out what is driving the purpbirds away since they are spiritualists. After fussing with a broken bridge, the heroes defeat Jarmlu and continue on their way with the help of the Skuruu.