I've seen the Townies be good for different types of riders:

* Women who are afraid of falling off a bike. (Not sure why I always hear that from women and not from men.)
* Heavy-set riders who have not been able to comfortably ride "standard" bikes. Once they lost a certain amount of weight, some of them get a "standard" bike, but others stick with that design.
* People who have some kind of health problem that make riding a standard bike difficult, but that semi-recumbant style works great. Some people don't have a health problem per se, but it just works for their bodies better.
* People who ride for short distances and/or stop a lot.
* People who like that certain "neo-retro" style of the Townie.
* People who just like riding something different.
* People who want to be able to decorate their bike with decals that resemble their tattoos.

If Townies get more people on bikes and reduces short car trips, I think they've earned a respectable place in the universe.