That could mean everything and nothing, really
(if you mean more meaningful interaction between players and environment and players between players, than I agree in principle). Improvements are much needed in every respect. But at least their recent Galnet postings refer to more or less immediately tangible
things in game. If they for example now add some community goal to support that Sirius corporation in developing the inter system jump drive and subsequently add such drives into the game, it will actually be a much better case of building lore than talking about the fate of some faceless emperor who has no immediate implications for the game mechanics.
I don't know if they'll ever reach a level, where the actual game mechanics, Galnet, NPCs etc. tie into each other to create a really satisfying narration, but I hope they're moving into such a direction. They've hinted at "The Lost" - old generation ships whose fate is unknown, which could be a splendid opportunity for driving narration. E.g.: A contact - high level imperial scientiest/historian or similar - starts giving out missions and telling tales about "The Lost". Which leads to players finding clues, abandoned settlements etc., eventually leading to missions narrowing down the location of such a generation ship ever more closely. Once found, this might lead to new crafting recipies, due to rediscovered arcane technology.
A lot of things would be necessary to make all of this believable. More asstet variety, e.g. the mentioned abandoned settlements/generation ships and the likes. NPCs in the first place. Ways to inject new dialog trees server side, so Frontier can act as "game masters" (as well as maybe the DDF people who've apparently been promised "god like powers"
). Also: ways to spawn assets/settlements/triggered events from the server side. Of course, the game logic for all those things and for interactions with the things out there. Other than
shooting at stuff, I mean, which is currently pretty much the only meaningful form of interaction, aside from scanning things, looking at things and scooping things.