How do you have such adorable townies?! Is it some kind of mod or something?

Well, I use a combination of clean templates + default face replacements to get rid of the Maxis townies. 🙂 I also use default replacements for clothing. Even so, my game still chooses to spawn townies wearing, er, interesting things, to say the least. So I use the Sim Blender and the Sim Boutique Clothing Rack to give them makeovers and change their outfits. Not a mod per se, more of a hacked object. 😉