I’ve always loved this part too, so I’m glad to see a whole post devoted to it! All a part of that “lived-in” feel that the galaxy has in the classics. And nothing like this in the newer movies at all (or any newer movies, Star Wars or not).
The same for me. It helps “ground” the film to me. Makes it more believable, more real, which can helpful in sci-fi and fantasy films to engage us viewers.
It is more interesting seeing scenes with this content in them, that the people are a part of something bigger, or with other events going on in the background, than scenes with poor or blank CGI backgrounds, or with little to nothing occurring in the background.