Since the elders met at a grief counseling group for people whose loved ones were murdered, and from there decided to form an underground early American rural secret society, hiding the outside world from their kids, then I would say the Village is formed out of anger.
The anger is manifest around the perimeter of the Village. Spikey raging torches are its teeth with a guard tower threatening at the portal. This contrasts with the innocence that is being guarded inside. The blissfully ignorant children play pioneer games such as swirl while you sweep, chase, and who can be least afraid of the dark woods with the scary sounds? They are afraid of the outside world, but not angry with it. The ones with the history with the towns are the angry ones, and their stories are meant to scare their kids from ever seeking to go to the towns.
I do not really understand why Edward Walker sent his blind daughter to go find the medicine instead of going himself. Nor why he didn’t tell her about the monster costume before making her touch it. He said she would succeed because of her motivating love, which apparently no one else had. But what was the real threat if Those We Don’t Speak Of were made up? Probably discovery, though I don’t know why that’s not really discussed, but Shyamalan is a subtle filmmaker. Not as much would be expected of a young blind girl. Her observation is that she is surprised the Park Ranger is kind and not nasty. She was told the towns and all in them are nasty monsters. Because the ones who killed her relatives were.
Interesting how one bad apple can spoil the reputation of the whole basketful. But was the baby thrown out with the bathwater? I don’t think so. The sweetness of the innocent outdoor play is manifestly superior to the electronic entertainments we indulge in today. As is the dress and speech. They weren’t just escaping murderers, but crudeness.
And they are all also traumatically connected to dead people. This is what gives the movie its mysterious silence. It is also what connects us to M. Night Shyamalan’s The Sixth Sense, and Signs. All of these movies are about people who are very traumatized by the deaths of loved ones. This upsetness speaks of the strength of their love. They were unable to continue their lives as they were before. So perhaps The Village was not just built from the anger of those left behind, but also on the love of those who left, who intervene still.
But would Lucius and Ivey want to remain secluded in the Village now that they knew the truth? The founding elders voted to keep it going even after the outsider medicine helped(?) Lucius, but would the next generation? I imagine that since they were not angry with the outside world, but held there by staged intimidation, except for the real murders of relatives they never knew, that curiosity would get the better of them, as would the love of shiny, impressive objects, just as it did their ancestors. No society has been able to completely resist. Would the Amish have resisted it as much as they have if there were not fear motivating them?
I wonder how the old Woodwright is doing?