Should being the key word here. I agree that the potential is there, but to bring it out you also need to add a lot more of the fluff around it. Even if you don't flesh it out too much 15th century England, Switzerland, Japan or Inca Empire tell pretty obvious (and different) stories based on what we know about history, their geographical position and neighbors.
Translating that experience into something that works with totally randomly generated alien races in a randomly generated galaxy is many many times more complex. You really need to make that pacifist space sponge feel different than a pacifist space mushroom.
This is also where I give great respect to Dwarf Fortress's crazy world history generation.