Tootler, our solutions coincide in many places, notably "[G] she was [C] out[G]ward". This is one of the "hook" phrases I was talking about before.

I am using all major and minor triads of the scale for more colour, but that is a matter of taste. However, your "[D] Blue Peter at the" does not sound OK to me, since in the second half with its C note it is too suggestive of D7. Either C or Am are needed there, I use them both.

Diminished chords are usually not associated with modal tunes; in pre-1600 music, they were condemned as devilish. Before 1500, there was not even a seventh note in the scale at all, so that using it amounted to something very close to a change of mode. We are free to abandon such traditions, but it becomes us to know them and to show due respect.

Suspended fourths are very common since 1400 (which means I did not exactly invent them), but they had to be "prepared" in the sense that the respective note had to be a consonant part of the previous chord. This is not the case here, so we must plead for folkloristic licence, as I wrote above. (In order to somewhat camouflage this fact, I used similar progressions later in the song, but prepared properly: "[G] she was [C] out[G]ward [Dsus4] bound [D]")

Preparing and resolving are properties of the voicing, not only of the chords. Therefore, and for other reasons, the tadpoles (resp. the MIDI sound, for those who rather trust their ears) should allow us a better judgement than mere chord symbols.