A "townie", in the context of the game, is a sim that is generated on the same template your sims are, but placed in a pool of otherwise non-playable sims. They have no special attributes that your sims can't also have out of the box, and do not perform any specific vital function: Their numbers are not important. An "NPC" is a specific signature character. The game considers them somewhat more necessary and they have special behaviors and functions. They are generated on their own templates and are seperate from "regular" sims. Many of them can be moved in and will appear to function as regular sims, but often retain lingering issues or behaviors pertaining to their special status. In short, a townie is just a regular sim, but an NPC may exhibit odd behaviors or issues if moved into a regular family. Since the game considers NPCs essential, they will always be regenerated.
Ah, yes. Emmeline's Uncle Drake always showed up at community lots or other sim households wearing his Llama mascot outfit. From that behavior I guessed that NPCs had 'issues.' One of my other sims is engaged to a cheerleader. I guess she'll have the same problem. Imagine that, an elderly cheerleader.