I think it’s more important for the game to be meaningful than difficult. How well do you know a neighborhood is deeply meaningful. How well do you know 2.5 neighborhoods isn’t. I’d strongly recommend sacrificing difficulty for meaning here.
Having the next 1.5 neighborhood is also valuable: if you live so close, it’s not a stretch to go learn the neighboring neighborhood (in fact, why not!?).
There maybe a level of “insult” (you don’t really know your ‘hood outside of the 5 streets), but used positively, I think the game is great.