I changed mine to a residential lot early on, and moved in the Wildfangs and some of the premades from the trailer that ended up on the gallery. I ripped out most of the objects, and took away most of the household funds, as sort of a modified rags to riches scenario.
It's worked out pretty well for me, but I really felt like those guys needed a place to live. I could also see it working out very well as a maker space or a rec center. Those seem like the most versatile options, and with so few lots in the world, versatile is probably the best way to go.