We very rarely see them flying in the manga, and when they do it's usually because of some sort of an incident. Even if the villagers can fly, they don't seem to have any reason to actually do.
It most likely takes a lot of effort to fly. We see Reimu and Marisa fly from time to time, but they usually walk. And I disagree, most villagers most likely
cannot fly.
@Ten Desires:
I don't know what the ten desires are. I have an idea, but don't know them. Greed, life, death are 3 of the ten desires that we were given information about.
I mean really, if being a hermit or saint is to get rid of worldly desires, I'd be surprised if they didn't miss any, especially Byakuren. Besides, Miko doesn't show any signs of being able to read her desires in both SoPM and HM. If she's supposed to be Miko's rival in the setting, it'd be weird if she doesn't have anything to counter Miko.
Neither Byakuren nor Kasen are fully fledge hermits. So, I don't see how they would have gotten rid of any of their desires. Though I guess it is possible that they have done enough hermit like stuff to be enlightened.
I think the idea of needing a counter is over thinking it, the advantage Miko has is not all that significant.
For example, let's say Byakuren desires peace between Youkai and humans. How would Miko take advantage even if she knows this?
Or another example, Byakuren wants Kyouko and Mystia to stop the concert. How would Miko take advantage knowing this?
Or say, Byakuren wants to beat up Miko.
And if you said being dead makes you lose those desires then maybe you have an idea about it, so please explain it first.
No, being dead doesn't make you lose those desires. For Youmu, it was because she is lacking 2. We know two of the ten desires to be:
Miko: From among the ten that I expected, your attachment to life and your envy of death are... I mentioned Yuyuko specifically, not dead characters in general. Yuyuko is able to control her temperament, which would imply that she is somewhat ascended.