There are a few missions where you collect audio recordings from certain people. Each person you learn more about adds to the atmosphere. You are able to take missions from certain individuals, each of whom have their own little story or little nuances. I also quite liked saving the claptraps who seem to add some personality to the game. Various individuals contact you throughout the game as well. The DLC was good, and had some funny moments, but too expensive for the amount of content. It should have been included with the game.
I played the entire game by myself (lvl39 sniper (mordecai), 20hrs playtime) including the DLC and I like the atmosphere. The feeling of isolation seems consistant with the planet you're on, the remoteness of your surroundings, and the mood of the locals.
Demon's Souls Official Thread | Currently playing: Left 4 Dead 2, LittleBigPlanet 2, Magicka