No, you're not imagining. That stretch used to be somewhat less crowded (not visible from Esplanade). But I do remember some days when the area from the pier to just south of Veterans Park would be packed solid. And Torrance beach also packed, as they had a lot of beach parking compared. Avenues had some crowds at times, but rarely fully "packed" (long steps or steep ramps not conducive to fatties/out of shape types).
I also remember hot late summer days when Sapphire/Topaz street parking was tough to find almost up to Coast hwy 3-4 blocks up from Esplanade. Not often, but it happened on occasion in late summer. Inlanders have always traveled to S. Redondo, from Torrance, Lomita, Gardena, Carson, you name it. Don't worry, it will pass by next month.
I remember during Don Swift's paddle out 2 years ago June, I had to park way up on Elvira. That paddle out was pretty big, probably close to 100 in the water and dozens more on the beach watching. That was a pretty big crowd day for that spot.