With level 3 medecine, villagers should live longer than 72-79. \:8 I think they should live into their 80s at least on average. When a villager dies I suggest the dead body look like a coffin, a body wrapped in cloth, or just a villager, only gray and clammy. I also think that bodies should be thrown out to sea instead of being buried. 8\)
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I bet the makers of Virtual Villagers have really bad survival skills. RuneScape pwns VV.