Why didn't Ashitaka return to his village after his curse was lifted? After his curse was lifted, the reason for his exile from his village no longer existed. His relationship with San also showed no signs of developing further.

But he decided to remain in Irontown.

Since he is a prince of his people (and the last one to boot), wouldn't it be more logical for him to return home?
I have a couple arguments on why he no longer returns home.

The first is that his banishment forbids him from doing so. Ashitaka cut his own hair which symbolizes him losing his culture and heritage. Kaya also gives Ashitaka her dagger because she wanted him to have a memento of her. It shows that he is no longer allowed to come back to the village. 

Another argument is that he no longer has a way of returning home. In the scenes following Ashitaka leaving the village, it is apparent that he has traveled a great distance from his village. Most likely he has forgotten the way home. 

Lastly, he could have stayed behind out of consideration for the others. Mononoke-hime is the person he loves and he wants to stay with her. It is possible he also wants to forge a good relationship between Irontown and the forest so that future demons won't come and attack his village or other villages. Furthermore, his elk was shot and probably can't go as far as it once could. So he stays out of consideration for the elk, since it's possible the elk would not have been able to make the journey.