Well, considering that it’s right by the stationmaster’s cupola, it seems an ideal place for a manually-operated train-order signal.
Re: the “Wild West”: I’d definitely suggest doing some research–it shouldn’t be too hard to do. I assume you want SOME connection to a prototype or otherwise believable line. Putting Indian tribes on a layout with a 19th Century theme wouldn’t be unheard of–I’m sure it has been done before. Perhaps the way to think of it is this: If you were modeling a 19th Century Australian railroad in the outback, how feasible/realistic would a tribe of Aborigines be? A lot depends on location–if it’s a Southwest theme, and the time period from the 1860’s-1890’s, then a few Indians on warhorses in full traditional garb certainly wouldn’t be outside the realm of possibility.
One thing you might consider adding to your town is a defunct industry–many ghost towns became ghost towns after the economic reason for the town’s existence went away or tapped out. This could be a mine (gold, silver, guano, etc.) or the remains of a logging town gone bankrupt, or other speculator’s wild dream gone awry.
Of course, plenty of small towns existed for not much more reason than there was a railroad nearby–but they would at least have a team track!
The G&D rolling stock isn’t impossible to find but it is kind of rare. Roundhouse makes short Overton passenger cars that are still in production and would do nicely.
A 2-6-0, especially an older-styled one, would work fine on a 4x6–18" radius curves are enough for such an engine, and a small one would even handle 15", I reckon. You might consider a 4-4-0, as that type is the sort of engine most associated with 19th century early Old West railroading, and would handle 15" curves with aplomb. It would also be more appropriate than an 0-4-0 or 0-6-0, as those were used as yard switchers (shunters) rather than road engines, and it would be unlikely to be seen out on the prairie at remote stations…