How is place=municipality used correctly and are there country/state-specific rules not to use it at all?

[mcliquid]

@Jarek

So using one place=municipality on this node makes sense to me. Maybe the node could be the label of Relation: ‪Bodman-Ludwigshafen‬ (‪2784817‬) | OpenStreetMap.

I’ve updated this one here: Changeset: 161000930 | OpenStreetMap

But in the end I agree with:

@Harald_Hetzner

I wonder why we would ever need a node with place=municipality. What does it help with municipalities where villages were put together for administrative purposes?

The same information is already available at the boundary relation and the only purpose is the simple rendering of maps.
The Wikidata item for the municipality goes into the relation and the Wikidata item for the village goes to the place=village node.

I would argue in favour of removing the municipality nodes and transferring the information to the relation. Especially since Carto does not use or display it at all.