Found it, thanks for the help. I have uploaded three more pictures.
Looking good. The leaves could be a little brighter though. They look more purple to me.
As far as suggestions go...
-Okuu/Mystia chickens
-Eirin skeleton archers
-Touhou themed paintings
-Armor styled after character's outfits (good luck on this one)
-Weapons styled after character's items. ie: Mima's staff or Reimu's gohei
-perhaps Yukkuri slimes instead of ghasts. Slimes come in different sizes!
Now the blocks are a different story. If you try to "Touhou-ify" the blocks based on Minecraft's standards, you'll run out of ideas quick. If you want to change many of these blocks, you'd be better off creating your own "feel" for the world. Think the Legend of Zelda texture pack. Each block was stylized after it's Zelda counterpart. It felt like you're really in a Zelda game.
You could also just change blocks to suit your whims..(ie: one texture pack changed the colored wool to have more complicated patterns - such as a tiled floor, a woven rug, or even an electrical box)
It's really up to you how much you want to "change" the world.