What stands out in An enclosed taiga valley built around water
The valley walls define the project boundary, while the lake and river can organize travel and districts. The central formation is especially useful as a landmark, but the word island-like suggests it may not be completely separated by water.
How I would approach this world
A server could place a shared town on the central land, farms along the river, and private bases around the valley rim. Solo builders might preserve the lake and use bridges instead of draining it. Taiga wood provides a consistent palette from the start.
Before settling into the world
Check the valley entrances, water continuity, and the height of the enclosing mountains in Bedrock 1.21.60. Confirm whether the central feature is a true island and locate at least one practical pass before committing to a large settlement.