So, if you have a particular way to using cosmology, history and geography as building blocks for your games and adventures, I would like to learn about it.
I developed a campaign using a method that can be loosely called "interaction" as you defined. Without going into too much detail, it was based in a small town on the edge of "wild" with plenty of area for the PCs to explore (and explored they did.) It lasted over 15 sessions and was good fun. This way of doing things worked fine for me.
Now I'm revisiting the campaign world and I want to add some depth, so I'm focusing on the ancient history which includes cosmology. The big effect history can have on a game world is mainly through catastrophes. War, famine, magical armageddon ...these things will influence how people will see the world, who's in power, and how that world is shaped.
The PCs don't necessarily have to know history to see its effects.