Perhaps my assessment is rather cold-blooded, but I think Margaret chose to give Townsend up because she didn't want to lose her prestige and her allowance.
To be fair to her, she was raised like a hot-house flower, and she wouldn't have had much savvy in making her own way in the world. (Rather like that Japanese princess who is marrying soon.) "Roman Holiday" is all very romantic, but to go from living as a princess to cleaning your own (or someone else's) toilet is an incredible change.
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