Just want to remind, or let people know that when traveling through towns, cities, and villages, large or small there are more people there than just the PCs and NPCs you can see and interact with.
Hlint population is 1'830 people
Fort Velensk has 9385 people
Hampshire has 49'000 people!
Pranzis with 42'000 people!
Lorindar with 15'000!
And Saudiria with 8'500.
Now I suppose this is open to interpretation, but it's important to remember when speak of "the city sure is busy today" only when there are 5+ PCs in the area, or "not many people here today" when it's just you and one other. Please remember, that you will almost always have half the total population somewhere in the big cities and towns, and possibly even more than the normal population from farmers, trappers, and small town craftsmen coming to the cities to trade.
Also I have to say (and this is opinion) but, on quests, unless something's attacking directly near you, there's nothing that says you have to jump up at every shout, disturbance, or gathering in the city. Sometimes, it's ok to RP that you don't recognize the person who just tried to assassinate the Duke of X, because he just looks like another one of the hundreds of faceless nobodies you see every day.
-ZV