"a little village where the villagers kept to themselves in little huts"
The repetition of "little" has been used to emphasise the state of the village: calm and inconspicious. The heavy exaggeration of just how uneventful this village is gives the reader a sense of impending destruction of the still, peaceful state that it is in. This results in the reader possessing an altered view on what lies ahead, they continue reading slightly wary and suspicious. This could also be foreshadowing at work, because although the reader has been given very little information regarding how the nature of the story changes, they still are under the impression that it will change. The way in which the villagers are said to keep to "themselves" is also important, because it demonstrates the lack of unity and communication within the village. This is a common theme throughout the story, as shown by the secrets and lies woven in to the village's social dynamics.
"reign of terrorism"
The word "reign" implies violence not just in that instant, but over a prolonged period of time. This suggests perpetual pain across the entire village, and grants the reader a view of the village that is unpleasant and perilous.
The body that is hanged sways, facing "east and then west". This is symbolic of life and death because they are opposite sides and representative of sunrise in the east and the sunset in the west.