I like it, I don't think that the path is too small... you have diffrent type of paths in life
. It's a bit straight indeed but it works with this level.
Your house isn't so horrible, it's nice and simple. The entire level is by the way. No negative points as far as I see.
What I would try tho is adding a bit of cut swamp as detail and maby one mushroom somewhere.
As for houses, try making a picture in your head and than try compromising a bit by using the tiles available within the tileset you use. Like maby a house with a wooden roof and some leafes growing ontop and some water within the leaves with a waterfall from a mountain pouring in and the waterfal flowing out and becoming a river. Than making the inside in a semi water covered thing aswell. But try keeping the perspective right, there's notting as awfull as people just cutting and pasting some weird shapes.. sticking a door on it and calling it a house.