I think the issue truly fails to explain why the villagers would stay there when they clearly have a working train to get them out of dodge.

To be fair, though, it's not the first plot in Season 8 to depend entirely on everyone collectively ignoring the most obvious solution. Also, you know, moving in Germany is a hell of an ordeal; it's an entire country of farmers living off the land and travelling by horse cart, after all, and the simple act of sending a messenger to find out if there's a place to live in another town could take months.