I also think it's a data issue here; the pedestrian area does not go inside the (mostly private) private houses. So one way would be to create a multipolygon relation containing the pedestrian area as "outer" and all houses as "inner"; this gets very big very fast. Also there are other pedestrian area *inside* the big area, like https://www.openstreetmap.org/way/45648329 , but those do make sense to me.
Finally I have a problem to name the whole big pedestrian area "Eguisheim"; the town itself contains much more than its center (see https://wiki.openstreetmap.org/wiki/Names#Name_is_the_name_only ).

I'm wondering what the intent of adding the pedestrian area was in the first place, and what deliminates it from the parts of the town that are not inside this area. Is it only a "loose" tagging, or are there verifyable sources on the ground to support the location of the outline, like the typical blue "pedestrian zone" signs?