Similar to the minish in legend of Zelda minish cap. The schmeechee lives in homes inside the caves, and uncommonly on the surface, this is due to the lack of their defense companion :).
The schmeechee build their own homes out of the rocks and rubble they find about, whether it be sticks or rocks and the such. The schmeechee and turabadas are companions of one another, and the turabadas seek to defend these little guys homes, from the wyrms that seek to destroy these cute little guys and their homes. The reason I say that these villages are uncommon to find on the surface, is that there’s little to no rock dudes to defend these little guys from the wyrms. This is all purely for aesthetic and charm, but may add an element of lore on how the creatures interact with one another.
Personal twist 1. Horror
Phantoms occasionally come by and frighten these schmee’s souls out of their body, leaving hollow husks behind of a living mushroom, this would add a bit more horror for whomever comes across this, and I’d imagine would look pretty terrifying, and could be cooked into a stew that either (1. Poisons you, 2. Blinds you similarly to Minecraft, 3. Gives you the effect “intimidate” which gives you a phantom like visual effect, and allows you to suck the life out of any enemy attacked.)
Personal Twist 2. Trading
You could interact with these little dudes and trade coins or loot with them in exchange for random things they’ve found around the cave.