I personally prefer a mix. Typically I run things on a smaller scale, so that the players are usually witnesses to larger events but don't tend to have the power or advance knowledge to alter them. Instead, they generally have much more local concerns.
When I'm a player, I generally prefer it the same way. I like to run my own factions and manage my own assets like an NPC boss but I don't kill Skywalker or save the deathstar or anything. I feel like avoiding those big metaplot events helps the galaxy feel much larger. So, in other words, there's rare a need to alter much about the universe from canon, beyond the local scale.