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Towns are basically hubs where you'll see other players, but not out in the world like an MMORPG or like in Diablo 4.
So you need to invite people or be invited, otherwise you are solo.
Even if you play solo you will see other people in towns and if you play in the trade league you can trade with others, everything but gold is tradable
In coop you get more exp, more drops and mobs/bosses get more hp
So you can still interact with others / trade / show off gear even in solo play? That's pretty neat.
https://www.youtube.com/watch?v=vsGUuQHLYLc
Most of the time one of the players will have stronger character and just carry the rest who will get bored quickly as they have very little to do.
And in Gear based game with insane scalling, it can't really be avoided.