There's a big difference between "the pcs rarely interact with magic" and "the peasants rarely interact with magic."
The latter, I would say, is barely relevant to how the game plays out.
I would have a small (very small) quibble with that.
I think that the "default" 5e is, to a certain extent ... um ... nobody cares what the peasants, or good people, or autonomous collective, are up to. It's kind of background noise- you care about the extent of magic in terms of how it affect the PCs (can they buy magic items, can they get healed or resurrected, etc.).
But most (not all) people just ignore the more general questions of whether druids help the farmers with animal husbandry, or clerics are healing the infirm, and so on.
The one major difference is if there is a campaign (such as Eberron) where the idea of "peasants" (commoners) interacting with magic is presented front and center- then it becomes very, very relevant to the game.
To put it more simply- default 5e is "no one cares too much about people other than the PCs and magic," and not-default 5e is "woah, there's a world other than the PCs, wonder how that works, exactly."