Yes that is correct, 32 players is the instance cap.
I have the same feeling as the OP, I don't see many players around anymore even though I am going to reasonably common trade systems that have rare commodities. For the time being I think players will have to create their own areas of interest like the conflict in lugh, I would imagine the developers are aware of the sparse feeling but it will take some time for them to solve.
The problem as I see it is a tricky one, because you need to create some kind of honeypots to draw the players together and to create a risk vs reward type scenario to make people feel engaged and that there is something to gain / lose by their involvement. But also you don't want players who are doing mining / trading to feel like they are just playing the role of fodder for the combat pilots. That's why I think there needs to be some more kinds of progression in the game, so players can work towards something. e.g. Eve has capital ships, territories, stations and some other stuff. I dont know what the answer is, but really from trading / mining all you can really do is save up to buy a bigger ship. And As others have already mentioned its possible to just drop into SOLO to avoid the risk of being ganked.
I would like to see more scenarios that bring players to work together, and have a sense of high risk / high reward. e.g. something like in the galaxy news report that a new rare mineral belt has been discovered in a system, and that X other system is in dire need of this resource because they need it to complete their terraforming project. This creates an area for miners to go, and a trade route which would both be very rewarding for the players who choose to take up the task. But at the same time, it will attract the pirates... and the bounty hunters. Make it online only so that players have to accept the risk to get the reward. Want to go mining for this valuable resource? Better bring your wingman to cover your butt. Want to go gank these miners / traders? You can bet there will be plenty of bounty hunters sitting in wait.
I really enjoy the game so far, the flight feels really nice and I like all the UI. But so far all I've been doing is trading because I don't really know where to go other than lugh to find other players, and trading seems to be the fastest ways to get credits to buy the gear you want.