Yagisan
On an indefinite hiatus.
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Yes. That is exactly how the vanilla game works. With the specific exceptions of Sanctuary and The Castle, you can lose control of any settlement in vanilla if their happiness gets too low. Effectively they can and will fire you.And you have no control at all on what is produced in a location you have full control, using a workbench you control fully by people under your orders...
SS2 adds a virtual economy loop. It's expected that you'll consume the outputs of the virtual economy in the commercial plots. How do you pay for it? Why, with the caps generated in the workbench, and the additional taxes generated from the tax collection municipal plot. Unlike vanilla this gives you some control of what is produced. This is a step up from vanilla, without being overpowering like SS1 was.