He outlines growing archaeological evidence for daily activities at the site, such as flintknapping and food preparation. “The presence of this evidence suggests that the site was not, after all, devoid of residential occupation, but likely had quite a large population,” Banning said.
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Without reading the actual reports, permanent settlement, even of a large group would not preclude it being a religious site (or temple). Many temples had permanent residents (priests, caretakers, slaves, etc) and served as both houses and sites of worship, even pilgrimage sites. So, quite realistically, they could both be right.
The Japanese are the only people who succeeded in developing an urban society before domestication of plants. That had to do with the very high level of productivity available in their forests.