Yes, but that was because the difference between a village and a town was not the size but if it had a wall or not.
No the difference, at least in Medieval times was that a Town had a cathedral (where people would come together) and which then were chartered as Market Towns. Of course most settlements big enough to have a cathedral were also able to afford to build walls but some still only had pallisades.
Even Villages had pallisade fences for security.
What a lot of people miss though is that the walled/fenced area of many towns wasnt a full wall nor did it surround the entire town. Indeed there was often a much larger area outside the wall (as Hussars second pic shows).
Cochester had a walled town around the castle and chapels, and another wall around its abbey and priory. However the port and most of the town lived outside the wall.
Personally I always say a rural towns center sits on 120 acres but the towns settlement covers a square mile (including farms, fields, abbeys, forests, rivers, watchtowers and various tiny hamlets that PCs rarely see since they far too small to have a tavern or useful shops).
Urban Settlements cover the same square mile but the whole area is built on and its influence extends out beyond that. (Colchester in the 14th century covered an area of over 2 square miles)