>>48604852>If you've played the games or seen the anime, then you know that people in the Pokemon world live in rural towns and urban cities similar to ones in the real world.The absence of evidence is not evidence. Just because urban and rural towns are all you ever see doesn't mean that places like Mushroomville don't exist. It simply means that such places weren't yet shown before Mushroomville.
There tend to be more urban and rural towns in Pokemon (especially the anime) because the creators seem to be too lazy to make adequate jungles, deserts, and other biomes, though these are more likely to appear in the games (where, even then, they're limited). That is why Pokemon that are based on animals like rhinos and elephants appear in places where their real-life counterparts wouldn't thrive or would be at a disadvantage in.
Even in the real world, among all the cities and towns, you'll find really fantastical places that look like something from a fairy tale. Such places are often tourist attractions or hidden off somewhere in a remote location.
It's kind of odd that that one weird town set you off, while I'm sitting here thinking there need to be MORE.