It can be played either way. It's hard to determine how "awful" a government really is just from two UWP stats.
We don't have to guess about what these worlds are like. We have plenty of examples of completely awful worlds within the Imperium.
Heck, even Regina has "strangulous" regulations and government authority, where mass arrests for simply being in the vicinity of a crime are the norm. Though, at least, you do have to have a trial or be released..eventually. At least, unless the Duke of Regina is involved.
You have "nice" totalitarian religious worlds like Pysadi, where membership in the church is mandatory, the Mother Church controls basically everything, and there is limited freedom of moment tolerated. But the Church itself is, at least, not a particularly awful version of dictatorship.
There's a world, Sima, where they maintain serfdom. Everyone is bound to their estate and employed solely at the whim of their local feudal lord, though they aren't slaves in that they can't be sold or killed on a whim.
And these are considered benign worlds where people are largely happy.
You, as the GM, can naturally decide what worlds are like and whether those totalitarian dictatorships are cuddly or not. And you can say that people are largely happy that they have no say in the government on most worlds, because they are corporate owned or the franchise is super restrictive or whatever.
But that's not generally the experience on Earth. And I doubt human nature has changed that much in the future.