The hospital is the same size as in VV4 and I can't remember seeing much complaint about the size in that game's forum. I must say, though, I prefer the hospital in VV3. In all the games there has sometimes been the problem you mention, such as when dropping peeps in the science lab.
The earthquake only resets unfinished projects, not completed ones - note that clearing the mausoleum and destroying the totem do not count as projects.
I don't have VV2 on this machine but I
think you are right - there are eight totems. Have you looked in the VV2 forum?