hafrogman
Adventurer
I think these two reasons are why it works best with a smaller settlement. Why stay? It's your home, and the safety of your houses may not be much, but it beats the miles of open road and hostile terrain between here and the nearest shelter. But still, before it got this bad, most people did leave. Some may have made it. . . maybe not. But the ones that are left are the stubborn, weak or fearful. Even then, the end of the campaign could feature trying to protect a refuge train to safety, finally abandoning the town, only to find that now your enemies hunt YOU!If this town out in the middle of nowhere is getting attacked by hordes of monsters every week, why aren't people leaving in droves?
If the characters are saving the town every week, why aren't they being given the best equipment available as soon as it becomes obvious that they are? ("Sorry, you're not high enough level for that.")
And this campaign would work best with found magic items, I think. You kill the orc chieftan, and his shiny sword drops lifeless from his fingers. The disheartened enemies are pushed back as their morale falters. The attack is over, for now. You pick up the fallen orc's blade, and feel its power coursing through you. . .
For a more personalized approach, you could have equipment raids into enemy settlements. The hobgoblins have started mining trace amounts of residium in the hills nearby. The raw stuff is worthless, but if you could raid their refinery, the village wise man says he will craft whatever you desire from your spoils.