And I disagree with your disagreement. In the best possible way! You see, I think you are both doing it wrong, and doing it right. Doing it wrong in the sense that FR really does have so many heroes that... they really are nearby. Your characters really are hearing about them all the time. They really are are that common and in many cases that powerful.I would disagree. I've played and run in the Forgotten Realms since 2nd edition and it's never been a problem unless someone decided to make it a problem. Usually the DM being to enamored of the NPC's they read about in the novels or supplements.
If you feel that you have to tell your players what all the high level NPC's are up to at the beginning of each adventure, and the players are feeling discouraged...that's not really a problem with the setting.
But you're also doing it right, because what's best for your players is to throw that crap out the window and run it your own way, and do what keeps the players happy. Which is the best kind of doing it right.
But this is mostly a Pre-5E issue.