Hello. 

You are right, the village shouldn't be mapped as a single residential area. The ideal way to map the village would be to draw each plot boundary separately and tag them appropriately. 

For a starting point, however, I think this kind of mapping is alright. It might make sense to add an additional "residential=rural" tag to indicate that it is a village, but since this village has some urban characteristics, I often don't end up adding that tag.

Overall, drawing polygons  with`residential=rural` specifically for the residential section of the village is the goal.