yet "thousands" died in the great war
count the NPCs living there, you barely come to 1000, if they do not have invisible families, they just couldnt support the "loses of the war"
the "civilization" in Skyrim is nothing compared to Daggerfall and still way too small compared to Oblivion
A big town like the Imperial City would be "overkill" for the rural area of Skyrim, but the hold capitals should have at least the size of Skingrad. The point is TES itself... its open world game, simulating a fantasy world. A part of this is the civilization, even when you never go there. Actualy think about it, what is the size of the town you live in RL and how many streets do you personaly know? How many do you cross on a daily basis?
When I first entered Cheydinhal or Skingrad, I explored the town and from then on I only went go one street, but when I entered the town, I felt civiliaztion, I feld safety, I looked left and right and saw buildings and people, it was nice. Skyrim feels like Fallout... a large deserted world.