When you create an intersection with small two-way roads, they create a weird junction where all roads give way to each other. In this case in reality you would just put down a roundabout, but currently the smallest roundabouts you can create are 8x8. Realistically a small road roundabout shouldn't be more than one block extra on either side, so 4x4, and there should only be enough room in the middle for one or two trees. In fact you might be able to do it without using any extra blocks, just cut away a little bit at the corners and put down an island.
As a side note, it would be nice to be able to specify which roads have stop signs and which have free flow.
As a side note, it would be nice to be able to specify which roads have stop signs and which have free flow.