One of my villagers saw a pair of eyes in the bushes. It turnes out to be a 16yo male who is already a master farmer. Is this just another one of the island events? I haven't heard of another player mention this situation before.

Yes, it's an Island Event, and the outcome you experienced isn't the only possibility for that particular event. Many of the Island Events have multiple outcomes.

Really?? The more I read, the more addicted I get!!
Can anyone actually see the island events (the monkeys)? The few that I've had, a box just pops on the screen telling me about it.

It would be fun to see the monkeys, but it would have added too much to the size of Village Sim to put all of those graphics into the game. So, we all just use our imaginations to see the monkeys, and all of the other things in the Island Events!