I just started my first game of FF yesterday. I must have had bad luck because I could not build more than 3 buildings without using terraforming. I had a mountainous area as starting region so that terraforming was the only way of getting any plots of land. Furthermore, the lakes were all deep holes in the landscape with no way of playing any fishing huts. I had only a single tiny strip of land suitable for farming. It took me 8 years to build 2 fishing huts and 10 houses with no fields and no level 2 building yet.
I suggest to make sure that players are getting more balanced landscapes when starting a game.
Welcome to the forum. 
Instead of using the basic settings when starting a new town click on the Advanced Settings and in there you can choose which sort of map you’d like to play. Click on the Random Terrain in that and you’ll have a choice of Arid Highlands, Alpine Meadows, Low Lakelands or Plains. You can also choose the diffficulties you’d like and if you don’t want to be bothered by raiders/predators then tick the Pacifist option to build in peace.
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As to the building area by map type, if someone chooses to build a town in the mountains, they are going to have to level some to build. That is part of the challenge of the map… else it would be similar to asking why in the Arid Highlands is there not a lot of water to be used… Arid implies scarce water. Mountain implies little flat land.
Yes, thanks - I overlooked the option to choose the terrain when starting the game. I found it not so intuitive to have another difficulty setting hidden in the terrain option and did not expect it to be there. So I just took the preset while changing all the other obvious difficulty settings.
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