First:
Even if ground-clipping problem can be fixed through other means, I think bellows will just look generally better with stable bottom instead of middle.
Second:
Huge forge with tiny bellows looks weird and unbalanced to me. Either forge should be scaled down again, or bellows expanded (or a bit of both). Personally I would prefer smaller version because it’s cuter.
I also still think that it looks like a well and that the roof may be a bit too modern. Classical design with a wall along one of the sides would feel more authentic and fitting for the type of the settlement we have.