A little blatant self-publicity there, but at least it's very much on-topic: the Millénaire mod (http://www.millenaire.org) already includes NPC villages for Minecraft, with NPCs that expend their villages, trade with the player, have children who get new jobs, produce new types of food and items, etc. They have a wide range of possible buildings too, and players can easily add their own plans to the mod. NPCs currently to either medieval Norman or medieval (Asian) Indian cultures.