Mistwalker's Hironobu Sakaguchi has revealed some of the details surrounding the various towns that populate Ruli Island in The Last Story.
It looks as though the dynamic population of each town will change their behavior on occasion, with the change being subtle or obvious, depending on the situation.
Exploration in the game will be encouraged, especially through the large towns which were deigned after real-life villages in present-day France and Italy - as shown by the concept art released for it last week and today.
Siliconera has the concept art posted, along with extra details derived from each bit. You should check 'em out.
The Last Story is slated for release on Wii later this year in Japan. A Western release has yet to be announced.