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The difference between Arcadia and Ghibli Hills is somewhat hard to tell. "Closely related to Ghibli Hills, but inhabited"—but many of the examples of Ghibli Hills are inhabited places. The descriptions of both tropes suggest somewhat peculiar things. Are "wandering monsters, highwaymen and wild magic" really present in most examples of Ghibli Hills?
Reymmăi think the difference is that Ghibli Hills is not necessarily uninhabited, but rather that unlike Arcadia, the people in it are not what characterises it. Arcadia is about the land and the farming community as a whole, Ghibli Hills is a landscape. The former is a place for the heroes to stay a while (or remember fondly), the latter is a backdrop to heroes on the move. There may be places to rest in the Ghibli Hills, but they belong in their own tropes.
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