Hi ricky

I'm pretty much having the same experience as you. But today, I made my first friend! xD
I've seen, maybe, 5 individuals in the few days I've been playing, and I've travelled quite far (I'm mapping out my local area in Photoshop). But today was the first time anybody actually stopped and spoke to me.
...Granted, it was to ask whether the boat I was riding in was stolen from him... lol. But we were soon travelling together and chatting away. He's a Russian player but I don't know his name, because all I could see was "???".
I've come across several large villages so far, and like you, rarely see anybody inside them. One person, if I'm really lucky.
But I actually like it this way. The world is so huge! It really feels like a wilderness, where I'm alone, and the only competition I have is from the bears and boars that spring from ambush at innopportune moments.
Those rare sightings of
actual humans becomes an exciting event. Whereas in most MMORPGs, I'm pushing through crowds, competing for mob spawns, getting PK'ed every five minutes outside of 'safe' zones... here, every person I see catches my immediate interest. What are they doing? Where are they going? Did they see me too? Could they kill me in 1 hit? Where'd they get those awesome clothes? Do they have a village nearby?
I don't know whether the sparse population is due to the world size, low server population, or both-- but I'm loving it this way.

For me, it's the perfect balance of near-solo survival gameplay while leaving the door open for occasional player-to-player opportunities and risks.