Baking is indeed difficult to follow, but once understood, becomes quite easy.
Blender 3d made the Baking Tools so easy to do.. Allowing users to bake textures, AO, Normals, etc etc etc..
Modelling Buildings and creating Textures is easy for me. I too wish to contribute to Banish Modding, but I still having trouble wrapping my head around the example files and documents regarding creating mods.
Mind you, when I looked into Simutrans Modding, i had similar problems. All Simutrans mebers have to offer is Data Files. and thats it. No explanation. but after a year of persistence and trial and error, I was able to understand and create a complete mod (unpublished) for myself to play with.