You're definitely not alone! When I was a kid I did practically the same: creating houses out of shoe boxes, doll houses, wooden blocks and empty shelves to give every pony a home. Thus, I created Pony City and Pony Village. Spent hours and hours perfecting my Ponyland: wrote newsletters just like you
, created a library, a grocery store, a school, a gift shop, a record shop, a clothing shop and a railway system using my brother's train set, haha! So many memories, happy to bring them up! I remember that I made Tickle a physician in my city and built her a small doctor's practice, though she was more of a shaman actually, since my ponies could easily solve things using their magic! I made Lickety Split filthy rich and gave her and her three babies the largest house. She was nice though, unlike Majesty. I remember her character as rather cold and treacherous, probably made her up this way because of her cold colour scheme. All the baby Pegasi were members of the flying-club, where they -or rather my sister and myself- practised dancing routines on music from Madonna, Whitney Houston & Michael Jackson.
What else? O yes, using spells from my self-made magic books they could do a lot of things, like time travelling: remember making them old Egyptian (Tootsie, one of my sister's ponies, still has Egyptian pen markings around her eyes till this day, poor girl!), medieval and ancient Greek outfits. Loved to use aluminium foil: made a lot of crowns and jewellery. I also made necklaces for my ponies using little glass beads.
Wish I had a spell to go back in time now...