We really don't know what the average Joe in the SW universe thinks about the Jedi in the OT. We do see someone alert the sandtroopers about the altercation in the Cantina. People probably get fried almost daily in that dive, but a Lightsaber was seen.

Over the years, people might clam up to get by under the new boss, people pass away without sharing their memories of the CW, memories fade, history books are rewritten by the victors, and younger people have not a clue.

There are people in this world who think the moon landings were faked in a tv studio. Disbelief in Jedi or the Force isn't that much of a stretch. (Especially if there is an Imperial propaganda machine in place.) Han might not have been anywhere near the war in his young life anyway.