You are mistaken. They were not forbidden from living in the village. They only lived in the outskirts because they had control over police force. The reason they lived together was because it is traditional for people from same clan to live together.
Tobirama never did anything forcibly to Uchiha, after Konoha was formed. He just used his diplomacy and political skills to make sure he could keep them under control. He never used force or direct laws to restrict their rights.
Basically, his approach was strategic and Uchiha themselves accepted it. When he offered them police force, they were glad. But unlike Tobirama, they did not understand the long term consequences.
