You sound like you play only SP on sparsely populated galaxies, which while certainly a valid game option, does not mean it is the only way to play.
And it certainly skews priority picks.
For MP I play with whatever settings people want. For SP I usually have ~15 empires in an 800 star galaxy with a third of those being advanced. Sometimes less, sometimes more.
Generally I expect to have a neighbor within 4-5 jumps.