I opted to keep all of the blades a awakened around so that I can have all of their battle and field skills at my disposal and engage the ones that have the skills I need to open a chest, open a sealed door, open an alternate path, unlock a new area, complete a side quest, etc. The more blades you have, the more likely they'll have the skills you need.
As for raising town development:
Spend money, talk to the townspeople, and complete merc and side missions when they appear.
Hardware Comparison Threads:
Current Thread
Is Hardware Getting TOO Powerful?
Older Threads:
PlayStation/Xbox/Switch: 2022 Edition
PlayStation/Xbox/Switch Hardware Battle: 2021 Edition!
PlayStation 4/Xbox One/Nintendo Switch: 2019 vs. 2020
PlayStation 4/Xbox One/Nintendo Switch: 2018 vs. 2019
PlayStation 4/Xbox One/Nintendo Switch: 2017 vs. 2018
PlayStation 4: 2015 vs. 2016 vs. 2017