I woudln't pick on the poster for reporting what seems to be poor information. I would tend to agree that it should not be called a village. It refers to a great city of the darklings. This could easily be just called a Great City, instead of level 8 village, but a level 8 Great City. Just needs a specialization tag to refer to this city and specialize it accordingly.
To the original poster the Village is not refering to the city size, but to the specialization of that particular city. Since the city has not specialized into anything like a fotress, town, conclave. It will show up as the title village instead. Not likely they will change anything, but it should be addressed eventually.