Mode7 tends to be better for a side scrolling game rather then forward and backward. However if you've ever played FFVI it's the exact same thing that was used on the overworld map. This script is perfect for those 2 main things, but on small maps because of layering and things like that, it tends to have a lot of graphical, and logistical problems.
I suggest using it somewhat sparingly. But if you want to make tents and things like that, just copy it from the tilesets and make a character set for them on say.. a 640x640 (160x160 tiles) format. That should give you the "pop up" feel. When it comes to things like walls at a length, there really is no way to make those look right, but the best way is to have just parts of the wall as individual character sprites (32x32 for those) and it should look ok.