Shnorlick, I do this all the time and I have a very good time doing it. Right now I'm redoing SV...again. My front street along the beach is going to be filled with real beach front looking houses and seedy dive bars. Sometimes I delete townies and fill them with my CAS Sims, sometimes not. This time around I've put the townies I don't like to play into houses I never play so that will take care of them. One thing I do is to save lots I like from other towns. In this version of SV I deleted the big park and replaced it with the big park from Bridgeport. I did that one because it has a food truck space. Then I went in and added a new play area, a pond, a picnic area and a wedding area. I added all the new home lots from Generations. I bulldozed the Landgrabb and Alto mansions then replaced them with a shopping area. I now have the circle filled with the movie studio,the stadium and the shopping plaza. I bulldozed the pond area and put other shops in there. The school is now located where the stadium used to be and I was able to enlarge and improve the playground area.
One piece of advice. Work on your town a bit at a time and keep a separate saved game for actual game play for when you do want to play. I found that it keeps me from wanting to rush my town. When my ideas are a little slow in coming I open the saved game and play. Eventually I'll go back to my town in progress with new ideas.
Remember, have fun and if it doesn't go the way you want the first time, well, just delete it and start again.