It's so interesting reading your experience. One of the reasons I couldn't settle back in the Oxford area after spending time travelling was this typically British attitude. And very much part of why I moved down to the South West. People are less inhibited by the dreary rules of British society. I make eye contact with pretty much everyone I pass in the street around here, though it's obviously a different story if I go to one of the cities. People say hi to each other and smile.
I even chat regularly with one of the local drunks and find him quite pleasant in nature - though definitely more so when he's not been drinking.
Of course, such small communities love to breed gossip and have a good share of in-fighting too. So it's not all hunky dory :)