They are mortal NPCs so I imagine as much as you wish.

First Issue That Might Crop Up: The townspeople are probably so damn pissed at all the destruction that they don't want to listen to either side and would want both teams gone.

Second Issue That Might Crop Up: I have to wonder if either side will have further use of this city and its citizens now that Kurama's got his ship and we've got our skyboards.

Heh, maybe this will be the only city we keep coming to as the story progresses...

Townsperson 1: "Oh god, not all these assholes again."
Townsperson 2: "Dammit, the restaurant that was burned down last time just reopened for business! I guess we can't expect to have good fishcakes anytime soon."

Go unleash your inner Semara.