I downloaded it earlier today but couldn't figure out what to do after I built the ant-hill. I'll give it another go later, but yeah it's a freemium game. They're trying to capitalize on the success of farmville/cityville. It's not develloped or published by Microsoft.
The real story here should be "Implode!" is deal of the week! That game is sick, I've been waiting for it to be deal of the week for a while.
EDIT: I got to mess around with Bug Village for a while and you made a big fuss over nothing. You can buy coins and acorns to speed things up if you would like, but at no point are you forced to buy them. Much like farmville there is also special items/houses that requires coins only, but again not required.
Also, the game runs while its closed. I set the "small piles" to 2 hours, closed it and when I came back a while later I had less than 20 minutes. Neat little game if you're into the farmvill-esque stuff, however as with farmville the main problem I had with it was the several hour wait time for crops and such, this game suffers from the same problem.
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