I bought the land near Falkreath, I started building a house and after much adventuring and thought I got Illia to be my steward. I got her to do a few improvements such as getting me a carriage and a horse.

After a bandit attack, where she made short work of the bastards trying to steal my cow, she started mining iron like crazy and has been at it ever since.

Now my problem is that she wont do any more improvements. The conversation option is gone, and I really wanted a bard and other stuff. Now is this a bug or will the option come back eventually when she sees us fit for more improvements?

Hope someone can help..

(By the way Im on pc, so console fixes would be cool)

Was it only the bard you missed out on? A horse, cow, couple of chickens (3 if you are lucky), carriage and bard are all there is. You want too many chickens the bard option sometimes vanishes, that is a bug. If the horse or cow die you should get the option to buy another, the chickens die they respawn when the house resets if you are away long enough (10 days). For a bard now you have missed out, you will likely need a console command. Hope someone can help you out.

Yeah it was only the bard I had left.. and I have all the chickens

But I guess I could just get a bard if I build a house in one of the other locations?

The other two bards (who are both ladies) are better I think anyway, although they all seem to get a bit annoying after a while. The bard you missed out on was the only guy, and some seemed to have trouble with his thieving habits, although I never had that problem myself. Next time remember to only get two chickens, till you get the bard, then invest in another chicken if the option is still there.