Edit: I'm posting my proposed solution in the comments.

Some of this post might be turned into a design blog.

--- Original Post ---
How does everyone feel about the names of the current settlement levels?
Village --> Town --> Large Town

Similar mods have used:
Hamlet --> Village --> Town

I'd like to explain why I chose a different naming progression. Please excuse this very long and detailed post!

Design Goals
When designing Dynamic Towns, I had a few key goals:

• historical accuracy
  
• immersion
  
• balance
  
• fun

I think historical accuracy and immersion are the relevant points for the naming progression.

Historical Accuracy
Looking into history and even archaeology, hamlets have existed stretching well back into prehistory. My understanding is that there were settlements of partially sedentary hunter-gatherers who began to build homes and grow gardens way back into the Stone Age. The emergence of agriculture is thought to coincide with the origins of the state and the beginning of larger scale settlements, which is why Civilization starts on turn 1 when you've just researched Agriculture and can then found your first City.

I think hamlets are too small to model as a separate improvement... every farm or mine has its own hamlet that you can actually see if you look closely on the map. That's why I chose Villages as the first tier of settlement, because they're a little larger and worthy of their own tile.

Towns arose in the medieval period as a strong middle class began to emerge. Merchants were able to create relatively independent centers of wealth, which might have sworn fealty to a noble lord, but this mostly meant they would pay taxes rather than contribute an army and build fortifications like castles. I think it's important for Dynamic Towns to reflect this history, which is why Towns are the middle tier of the progression unlocked by Guilds.

In the Renaissance, the invention of cannon truly changed the feudal landscape. You couldn't build a wall that could withstand sustained cannonfire, and so the balance of power shifted away from fortifications, and even more toward money and the newly created banking system. So Towns only continued to grow during this epoch.

Immersion
In my view, immersive gameplay gets all the details right so you can just play and everything flows how you would expect. Dynamic Towns mainly tries to be immersive through the location quality system. For immersion's sake, it has even more detail than I've mentioned: for example, is your Village next to Wine owned by a City-State? That'll be a desirable location if they're allied with you -- they're letting your villagers cross the border and enjoy those local wines.

In a mod for Civ, I also think immersion means matching the level of streamlined historical accuracy of the game. That's why, for the reasons I mentioned under Historical Accuracy, I think it's important to keep the beginning of the progression:
Village --> Town --> (something that means a larger town)

What should Large Towns be called?
Unfortunately, English is really sparse on words for a large town. We basically just call everything a town, until it's big enough to be a city. Looking at Merriam-Webster's thesaurus, the only plausible words I can see are:

• suburb (taken by the Tradition finisher)
  
• burg (taken by the Liberty finisher)
  
• exurb (not very iconic)
  
• municipality (not very iconic, and doesn't really sound larger than a town)
  
• borough (sounds very similar to burg, and also not larger than a town)
  
• conurbation (what is this??)

To my mind, the only really plausible option here is burg, although it does conjure an image of a late medieval or renaissance town in central or western Europe.

We would also need to find a new name for the Liberty finisher. Shires? Townships? I don't know.

I should mention: I do also have a very tentatively planned feature for a new Commerce finisher. It would unlock a 4th tier of settlement, which could only grow with at least 3 location qualities. So that's also in contention for the name Burgs.

TL;DR
Villages --> Towns should be the beginning of the progression for reasons of historical accuracy. The 3rd tier could be renamed. I know Large Town isn't the most iconic name, but in light of everything else I think it's the best compromise. Do you have a strong opinion on this? I'd love to hear from the community!