Good point, Parla. Sorry, I took my eye off the target for a moment there.
👁 Eek! :o So my ngram results aren't really relevant, because they probably include mostly references to the townspeople of a particular town.
And I agree that "townspeople" wouldn't normally be used as a generic term, such as in the sentence in post #1. I'd probably say "people who live in cities" (or "in towns" or "in urban areas"), though I have to admit that your "city dwellers" is more concise.
I'm not so sure about the validity of the statement, though. I guess it depends on the country in question, but I certainly see more down-and-outs, homeless people and sub-standard living conditions in cities than I ever do in country areas. No doubt statistics would prove me wrong. (But I know ... that wasn't the question! It was nominally about the grammar, though actually about the semantics.
👁 Wink ;))
Ws👁 Smile :)