For me the most important factor is that so far for all the games I have played, the Night City is the first big city that actually feels like one. Way I see pedestrians is way I see people when I visit major cities IRL and that also goes for interactivity, say I visit our capitol quite often. If some stranger tries to make conversation in 90% of cases they either want to bum something or sell something, we have this fuck off attitude for a reason.
For recent comparable games I have only played the Outer Worlds and Wasteland 3 and those cities are much smaller and static. I don't know what it is that people are expecting here exactly.
EDIT: There is a problem though. They don't appear to react car horn.
I think people expected an Elder Scrolls level of AI routine, where everyone has a scripted sequence of events that they must go through every day, but that's just unrealistic and CDPR never implied such a thing, I don't understand where this disconnect comes from since I was following the hype from the very beginning and was unaware of such a claim.
I do agree, purely from a visual standpoint Night City immerses me more than any other game world, my brain is being tricked into believing that it's exploring a believable urban environment populated by millions of people.
But the pedestrian AI and traffic AI have major issues that need to be addressed.