>>47581247Game locations are whimsical abstractions from the perspective of an 11-16 year old who's fixated solely on their Pokemon journey.
There's far more than what the game is showing because GameFreak doesn't want to spend extra programming time on superfluous locations irrelevant to the player's journey.
Although in Oldale's case, it's a far more rural town that's spread out, think of it in similar fashion to what they would have done for Kanto in Gold's original Japan Tour vision.