1. Most of that DOES make sense, but think, do you really want villages to bound you in the way you CAN go, when it's supposed to be a realistic game, pretty sure people would like to have good stats in ninjutsu BUT want to have lightning and water as their chakra natures, but starting in Kinzokugakure (Hidden Metal) gives you better stats at kenjutsu and poor stats in ninjutsu? Or you want to be a puppeteer with lightning and water as your elements but starting in Kaminarigakure makes you the worst puppeteer and gives you good kenjutsu skills?

I'm not really okay with the team making a political and military situation template for each village and the villagers just have to roleplay to fit the template, the players should be the ones making the situations, like the Kage of, lets say, Kaminarigakure made some poor decision and lost half of it's troops in war, the situation wasn't because of the staff, rather because the Kage (who is a player)wasn't worthy of being Kage, and got there because of, let's say, bribing the people of the village with lots of good stuff.

The economical status should be made into equal for every village at the start, but then left to the players to better or worsen it.

2. I'm pretty sure that leaving them in Romaji is the best decision, seeing as this game is not JUST for the Japanese audience, rather for a global audience, and making the village names Kanji wouldn't really help attract players, unless you release different versions of the game to different regions, in which case the names in the English speaking part of the world will have to have either Romaji names (like Kaminarigakure) or English names (like The Village Hidden by Thunder).

Feel free to point out where I'm wrong in all this, would be glad to have my eyes opened.

1. While I understand the lure of player's choice in shaping their villages, there's supposed to be lots of world-building done beforehand to help with immersion, I believe. It's not even totally about the economic situation, more that there's a kind of difference in doing things. Or maybe some villages won't have as much missions in one-rank as the other to begin with, though this could change with more players gaining the rank. Or, to bring specialization, some villages have more missions of a certain type, like Haze having more infiltration/assassination missions than Ash, and Thunder having more outright fights or bounties available. Not saying that only these missions would be available, but it's not about strict pigeon-holing, but more about ease and expanded opportunity in areas.

And while it's not a specific strict bound kind of thing, like the way you put it. More like it's what available. For example, someone born in Hidden Metal isn't automatically better at puppet-jutsu than someone from Dust. It could be that you're just more likely to buy and learn puppet-using techniques in Metal than Dust, or that they will be more advanced in one village for learning (and of course the ninja can learn all the techniques eventually but it'll take longer with person whose not in a village that specializes). And the puppets you can buy being of higher quality.

I just feel like that would be truer to canon and more interesting. Naruto had to go ask Asuma for help with his wind-training, remember, because he had an uncommon trait in his village. Thus someone from Konoha interested in fan-jutsu, specifically for ones where use them like Temari does (wind-infused), would have to look farther for ways to learn about it than someone simply born in suna who can probably just go to the library or buy a scroll from a merchant.

In mmorpg terms, think of this way certain races/factions are set up. While they share classes, there are race-specific variations and of course, specializations.

2. I should have actually been clearer, my bad. I meant more like in the sense of using clearly roman/english words when there are Japanese versions. Example 'Inferno', which is Inferuno when said in Japanese, instead something else that means the same thing (like conflagration), which would be 'Taika'. So you want a village hidden in massive flames that swallow everything up, which would work just as well as 'taikanogakure' as 'inferunogakure', just be less awkward? Idk, i know this is a massive nitpick however, feel free to call it bull.

I have a couple of questions about this and I really do hope this is the appropriate place to ask them. If not, can someone please direct me where?

1. What are the differences between the villages besides the chakra natures?

Chakra natures are from the end all in 'canon', since modes/styles of fighting and specialization vary among the villages (i.e. Mist/Cloud's tendency to have people who use kenjutsu (sword fighting), kugutsu and tessenjutsu (puppets and fans) in Sunagakure, or how Amegakure was apparently reliant on poisons and genjutsu)

Adding to wanting more information on specialization/techniques common amongst the shinobi of specific villages, what are the political situations? These are different countries we're talking about, so each one would have a definite difference, sociopolitically. Are some villages poorer than others? Are some rife with tension?

I'm just asking this because it seems like a bad idea to base off a decision on where your character belongs soley on chakra natures and the names of villages. For all we know, the village of Inferno can specialize in genjutsu making the person merely think they're burning alive and not actually much to do with infernos unless we're talking about blaze release.

2. Maybe this is too nitpicky but I think other people will notice (and I'm sure someone besides me has) but some of the names you have for the villages are in Romaji? Are these mostly placeholder names until you guys have a writing team and someone who speaks Japanese that can re work the names to not be romaji-based? I'm speaking about words like Heizugakure or Inferunogakure, the latter would work just as well with Taikagakure, I believe.