Your classification of worldbuilding and worldburning does seem useful. But I'd note - sometimes worldburning can be useful. "The queen is the prettiest in the land" would also be somewhat world-burning, but also establishes some personal stakes for her later in the story.
It’s not world-burning unless knowing that conveys the information that all the other people in said land aren’t worth caring about. If it was like Dragon Ball Z, only instead of “power level” it was “prettiness” and only people with high prettiness could possibly be relevant or possibly do things, then declaring a queen the prettiest in the land could be world-burning, or part of it.
The relevant point, I think, is that not all narrative forms benefit from worldbuilding (in the sense you’re using the term); you don’t always want your setting to feel like a “real place” full of vibrant details that will come to life if you go explore them.
Fairy tales make for a really good example, actually. A lot of fairy tales fall apart, or at least fail to work properly on an emotional / connotative level, if you start asking questions like “why didn’t the wicked queen’s terrible policies result in her lands getting invaded by a miffed trading partner?” or “why didn’t the handsome lad just go find some other pretty girl to pursue?” It’s actually really useful to be able to communicate a sense of “no, seriously, these are the only people in the entire world who matter.” The queen is the fairest woman in all the realm is a very pithy way of saying “this is a story that is partly about the dynamics and relevance of beauty, and you should be focused entirely on her and on anyone who gets similarly anointed by the plot gods.”
For a somewhat-more-modern take on the same mechanism, look at Revolutionary Girl Utena, which very effectively – albeit, uh, nonsensically in a magically-realistic sort of way – uses metaphysics to say “nothing outside this high school can possibly have any relevance” precisely for the sake of establishing “…and therefore the random psychological problems of these high school students have World-Shaking Significance.”
Not what you want in Star Wars, though, to be sure.