Under the version 1 of the rules each hero could could only request aid from ONE of the villagers:
"Each hero may seek aid from one Villager per round."
i.e. three heroes could only get a max of three villagers to work each round.
Now, in the version 2 rulebook there is no such restriction, so I assume that under the new rules ALL the villagers in the villager display can now be asked for help and all of them could be asked by a single hero - correct?
I have to admit I actually quite liked the first edition of the rules as it led to some decision making and a lot talk between the players.
This is correct. So many of the effects are global or monster-targeting (such as the Baker and Priest, respectively) that it was actually pretty rare the rule would even matter other than requiring the players to do a little fiddly bookkeeping.
I agree that I'm all for table-talk and interesting decisions, but this wasn't a consistent enough place to produce them and mostly just penalized smaller player counts (and sure, smaller player counts have an easier game so one could argue that's just a positive balancing element...). It also made little (if any) thematic sense. Limited capacity to perform actions makes sense. Limited capacity to receive help from others...a little less so.