I am only taking about the gameplay not the story or the morality. A game can have the greatest story or premise but if it takes hours of boring grinding to reach the payoff, it is worth it for everyone? Long pointless padding would stop people from reaching the ending or replaying it. I understand now that this game was made before LW2 so I can't blame this game was what LW2 did better. Though I am glad that maybe lesson learned from this game improved LW2.
Personally, I kinda like the padding, there wasn't a time I felt it was too much. For me, the padding is part of the gameplay, you wake up, find herbs, talk to her and sleep. The feeling playing this game is like playing Harvest Moon Friends of Mineral Town, you don't have a goal, you're just doing your best each day.
However, it was never felt boring to me, new unlocks are spread across the game evenly. I always found something new to do.
LW2 is vastly different, as there's a clear goal in mind, voices are better, more scenes. I wouldn't say LW2 is the improved version of Living With An Elf. I feel these 2 games are different and appeal to different demographics.
I would say LW2 is definitely a more finalized version of the first game, Lonely Wife.