system
Given the following post, respond as if you're commenting on Reddit:
human
[Star Wars] Why is Tatooine so important?

In A New Hope, you get the impression that Tatooine is basically the ass end of the galaxy and nothing of importance goes on there.  But through the movies and series like Mandalorian and Boba Fett, it seems that it is an important trade route, space port and hub for criminal empires.  But it has no real resources and is a pretty hard place to live.  Was Luke simply underselling it?
gpt
It's on the nexus of two important hyperlanes-the Triellus Trade Route which is the main trade route across the Outer Rim, and the Correlian Run, which is the largest trade route in the Galaxy and goes straight from the Core Worlds. It's a logical transport hub that connects the Inner worlds to the Outer Rim. 

There's nothing really special about the planet itself. It's resource poor, not hospitable, and doesn't have any great cultural or religious significance, but it's a useful hub.

Luke himself was also sort of underselling it. Luke lived in pretty much the middle of nowhere on the planet, and rarely ventured further than Anchorhead, which itself was still a fairly small settlement. Mos Eisely and Mos Espa are much more active, but his aunt and uncle likely never let him stray that far out.