As I creep out of isolation, I am finding social interaction to be something that brings me joy after around three years of almost none (except close fmaily). It feels a little awkward right now, but I even engage with strangers when waiting in line or in a waiting room. However, most like you observed, are "busy" with their phones. They sometimes seem annoyed when I take their attention away from that tech too.
It is funny (and sad), because people say they would like the world to be friendlier, but no one has time to be friendly.
I think that many people will turn toward interest groups again, like dancing. As in those groups, it is far easier to interact around activities, without the feeling of "stranger" issues.