Yeah more prosperity - more profit is good idea and very simple to implement.
It seems to me that TW attempted to make workshops depend on in-game market conditions, but it's very complicated and hence more error prone, buggy.
Fastest thing to fix the issue is just using doing [daily base income] multiplied by [town prosperity]. Yeah this will be less realistic, but at least would worked properly and less confusing.
Issues: daily tick, instant supply/demand fluctuations and updates, no actual...expenditure of most of the commodities that are being traded (they just decay or something), etc...Game and TW can't do economy well enough to have it work like you would imagine it would impact a game map for an actual 'trade-like' game. I don't even think villagers/caravans
really impact the transfer of goods entirely (just a minor impact - as things still 'spawn' in willy-nilly).
The current initial capital to get the first workshop is just an arbitrary number to 'delay' the ease of the player getting passive income too quickly (by T1 even)...Yet they now implemented the alleyways which sort of throws that intention out the window.
IMHO, for the most players - the economic aspect of the game is less important. People who much into economic stuff usually play Tycoon-style games.
Yep, this game is so far removed from any decent 'economy' focused/4X sort of game. It's just a mode of passive income - there's no benefit to picking a particular workshop over another (just min/max for biggest numbers). You might as well just remove it entirely for party wages - and just pivot it more heavily towards food/horses/moral/etc...as the 'costs' in maintaining an army.