This seems like an issue. The average driver should absolutely notice the environment they're operating in.
This includes noticing those around them. This should be especially true for the more vulnerable road users.
If you are riding a bicycle in an area (like mine) where biking is just not at all that common in the majority of areas, then the drivers of motor vehicles are just out of practice of noticing bicycles. It is not in their muscle memory of needing to look out for them. Other cars, sure. Pedestrians, maybe (but that's probably pretty low as well).