demosthenes
Member
But straight up Tatooine KNOWS about Jedi. Fucking Watto in the prequels even says basically something about "Jedi Mind tricks don't work on me". Clearly if some low-level Junk Dealer on the ass end of the galaxy can reference Jedi in normal conversation they're not at "Mythical Status"
Honestly I always thought way back before the prequels that the reason there were so few Jedi wasn't because only a small number of them could use the force, but because whatever the "Clone Wars" were (which back at the time seemed way different) devastated their numbers and left so few of them left.
In his defense:
http://starwars.wikia.com/wiki/Watto He used to be a solider.
Basically this:
Its not that weird that the Jedi were regarded as myth even in ANH. There were barely any Jedi left at the start of the prequel trilogy and even fewer by episode 3. Think of how many planets there are in the galaxy . The number of people who had ever even seen a jedi would be so low it may as well be zero when compared the galaxy's population of sentient beings.