Hi, one of the factories pictured and visited is in Yiwu. Contrary to popular belief, not all art factories are in Dafen China, and the reality is it became more of a tourist destination than an actual factory town. This is mostly because of the rising cost of rent as Shenzhen (Dafen is really a district of Shenzhen, not a remote "village") is also a Chinese tech hub headquartered by many startups and companies including Tencent.

Here is a picture of a luxury condominium right at the entrance of Dafen "village". https://dl.dropboxusercontent.com/u/1700930/unspecified.jpeg

Many other areas where replica paintings are manufactured include Yiwu, Xiamen, and Beijing.

It may well have been a village as recently as 20 years ago. Shenzhen is a huge conurbation that has swallowed countless towns and villages.

Well, many Chinese neighborhoods or residential areas contain "village" (村) in their name.

And you are right, it is not actually a village. It is just an area and another metro station in Shenzhen.