Was the feudal system fair for the townspeople?

Yes! in ways feudalism is fair. For example peasants, you may not think they get a lot of freedom. But freedom does not only mean the right to do things as a lord or a vassal can do. Freedom can also mean the freedom to live and the freedom to not starve. And also everyone gets something in return, as in: a lord gives a fief, a fief is something of sort that is valuable, and in the middle ages land was the most valued possession. So land was given to a noble man for his service( only men at the time could receive a fief ). A noble man can also give the land to knights for the same reason, for their service. But knights not only get land but also get all the equipment they need. And noble men can still give pieces of their land to peasants for their service, even though they do all the work. But there is still some perks of being a peasant, if there is war on the land you receive protection from your lord( the noble man, because when he gave land to you, you became a vassal and he became your lord ). So in all ways feudalism is fair.