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Regarding terrain-flattening: I did a quick thing like here to experiment with it. It's purely visual (it doesn't affect pathfinding) and stateless (it can be recomputed from the sim heightmap plus the current list of entities with TerrainFlattener components, so there's nothing to be serialized in saved games or network-synchronised). Currently it averages the terrain heights in a circle around the building, with a falloff so the vertexes nearer the edges have less weight, and then it moves every vertex in that circle towards that average height (using the same falloff weight, so vertexes nearer the edges move much less). That means the area under the building remains mostly flat, while the area just outside the building slopes relatively smoothly towards it. (The normal build restrictions stop you placing a building too near a steep slope, so you can't distort the terrain too much anyway). That's easy to implement and probably helps with most cases of building on bumpy ground.

They look really nice in game. One point of criticism, I don't know if I'm nitpicking too much, but the anvil texture looks a bit 'flat'. A used anvil is shiny on the top and point, but a bit rusty on other places (because a blacksmith only uses the top to flatten things, or the point to curve things). I mainly noticed it on the greek blacksmith because that one has a smaller sword blade on it. Here's an example of what I mean: Btw, thanks for using the 'floating prop' system. It looks really nice.