I was rewatching the Nintendo Treehouse live and I noticed it says 'Treehouse Miles' in the corner here.
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Assuming Treehouse is what they named the town, that would be 9 letters! I mean, it's always possible they changed the character limit just for the live stream (since they changed stuff like the villager dialogue as well), but wouldn't it be kind of strange not to put that in the final game?
Idk, it's always been 8 characters so I don't really mind if it doesn't change, but lots of people would be happy with more options for longer or 2 word town names