Miniatures who came to life!!! Did you read The Borrowers? I loved those books and insisted that my dolls came to life at night. In their little town. You had Breyer horses....!!! What treasures! I can't access your image but Barbies and Breyer horses sound like a great pairing to me. :)
Our dad built us a very basic dollhouse out of plywood. We made furniture out of velveeta cheese boxes, pop-tart boxes, fabric scraps, other found items. Looking back, it was a better way to play than being given all the glorious, richly detailed, realistic, but PLASTIC toys my own kids got. But we also helped them construct their own habitats for dolls. With samples from home improvement stores. And of course we bought the miniature furniture (this stuff is not cheap!).

Thanks for reading and commenting and sharing your own childhood memories. Toys are like holy icons, to my mind....