I was not that impressed by it, because I think Rich Baker's other Dragon articles (and his writing in general) have always been much more inspiring -- the content in this one seemed pretty "bland" in feel, and all the names felt also quite "uninspired" to me (e.g. Moon Hills, Blue Moon, Lucky Gnome, Nentir Inn, King's Road, etc.). Maybe it's because I really expect Rich's stuff to be mind-blowing in nature that I felt a bit disappointed by the excerpt? Anyway, it's not bad, but I felt that Saltmarsh in DMG II was far more inspiring and it also had a lot of intriguing plot hooks and NPCs. Of course, I need to see the full entry to make my final judgement on the matter.
The map is actually quite good, although at first I was bothered by the extent of the walls and the heavily-fortified keep/castle in a small town. Then I spotted the obvious ruined sections of the town and the walls, and I realized that Fallcrest is probably built on the site of another ancient town or city (which should provide nice adventuring hooks).
The only thing really troubling me is that there are three whole temples in small town like this, while it would be more realistic to assume that there is only one temple at most or several smaller shrines. However, this may be linked to the town's past, or perhaps Fallcrest is important enough to merit three faiths investing in temples and clergy.
Also, the only NPC seems to be a "hybrid" version between 'exception-based' monster design and PC creation rules. Why is that? Why couldn't the tiefling be either a "DM PC" or a monster?
As I already mentioned above, the only adventure hook mentioned is pretty obvious and therefore a bit weak.