It took me a bit of consideration, but the more I think about it, the more I can get behind the decision you’ve made here. It does indeed fit with the spirit of the game. The one thing I would offer, which appears to have been proposed and hinted at above (in which case, consider this more support for said ponderings), is the means through which past settlements could be echoed in some way into future settlements. From the perspective of someone who plays games with considerable amounts of progression in mind, the idea of re-embarkation holds quite a bit of promise (extending your time with some of the characters you’ve grown attached to). The problem is the clean slate dilemma - While you do get to carry a select number of Hearthlings and a banner over, it is as if the rest of that playthrough never was. It can come across as a “generate your three characters for custom embarkation” mode, only taking a playthrough or two to do so.
Much like the bunny shrines that litter the world, there should be some sort of sign that something came before, some means of continuing the narrative in a more tangible way. I like the idea of visiting traders from previous cities, quests that involve a select hearthling or two traveling off the map to visit a previous settlement and returning with something that settlement has come to be known for. To keep the development of such a thing feasible, you could have each successive town be chronologically forward in time a certain amount of time, with previous saves being stuck “in the moment” if you will, or you could have new quests in your original settlement occur once future playthroughs have reached a certain point (leaning on the more ambitious side here).
The point of my rambling though is that, just as there are the ancient rabbit statues and future “land scars” showing the history of Hearth for the player to form their own narratives, I feel like there should be some mark on a player’s world of Hearth based on the games they’ve played… Heck, maybe you could even have a series of games form a specific chronology, with all games born from an embarkation being an extension of the games they were spawned from and connected only to those games (so as to give you a specific set of data to work with).
Regardless, good desktop tuesday looking forward to seeing what’s around the next bend!