PJ maybe was able to make the parting reasonably friendly at the time. Even so, Townsend seems to have left the project without a word to his co-stars. We don't know that for sure, I guess - the actors only tell us what they want us to know, and rightly so. But Sean Astin at least mentions the suddenness of the departure, and the lack of any word from him afterwards. No matter what, it must have been a blow and a terrible disappointment - I don't see how PJ could avoid that.
When I was trying to find the Irish Times article I'd read, I came across an even older one
mentioned on the front page of TORn back in 2001. This is from January 2001, almost a year before the first movie was released, and already Townsend is pretty upset:
"It was a ‘horrible’ experience, he says, and not one he’s keen to dwell upon to any extent, although he is becoming more philosophical about it. ‘Now I am glad that I’m off it. I really am. It was a very interesting experience, but I’m glad because it left me free to do another big studio movie, Queen of the Damned, which was wonderful to do..."
It must have seemed much worse once the movies came out and did so well, while his other projects never amounted to very much. Even if he wasn't upset at first, you'd think he soon would be once the reality sank in. It's too bad about the rumours, but since the filmmakers provided only the vaguest of diplomatic reasons for dropping him, I suppose rumours were inevitable.