One town/city

Bill,

These days I find that I shun the Interstates of the less traveled roads.  I enjoy the smaller towns with the older downtowns (some that are thriving) and the rails that connected them.  These towns often had streets which names like "Railroad Ave" and "Depot St."  There you would see everything that you described.

Jan

Bill,

The short answer to your question is "YES."  However, it is more often being done in smaller scales.  I suggest you search groups.io for Proto-Layouts and/or LDSIG and maybe search youtube and facebook for layout planning tips.  One-town model railroads are quite popular for people with little available space that still wish to build.  Some of them are ends of branchlines, some are port operations, and some are just large industries located in one town.

Chuck

Bill,

You are correct that it would be easy to fill in a mid size layout. However, if anyone of us had a room that was 60’ x 60’ we would lament that we would need just three more feet.  
Perhaps with some industry in the middle you could have a town and a village.

Jay