The town area starts out as a bit of a cliché . When you first arrive, the town is in shambles. But if you are feeling charitable, you can help the townspeople rebuilt their various houses and shops. This in turn opens up more resources for the player.
The Inn is a great spot for passing travelers to stop in and trade stories. Repairing it will mean more people to interact with and potentially recruit for your adventures.
Iris the antique dealer can tell you about any odd trinkets you find in your travels. She has a lot of information to tell anyone willing to listen (and drop a coin in her donation box).
The local blacksmith can forge and upgrade your weapons. Some weapons are unlocked based on your fame. Others are hidden behind quests and require great skill to unlock.
As the game progresses, the town will open up more and more people and possibilities. A big part of making it was to give players small experiences that might connect them to the game world. And there are lots of small interactions and secrets waiting to be discovered.