As far as the mindset goes, I’d say keep in mind that when Europeans landed in the Americas and Australia, they considered those continents to be “empty”, free for the taking. Their world may not have been so different from the first human to walk out of Africa.
The first descriptions of what's now the US east coast from explorers describe coastlines lined with fires as far as the eye could see, and suggested a fairly densely populated continent.
The descriptions from the early settlers (as you've noted) describe a loosely populated land of "savages".
I've always considered the 16th century a time of essentially apocalypse for North America. Imagine what would happen to our society if we had a 90% die-off over 100 years; even in the modern era we would probably find ourselves regressing to "savagery".
I don't think 16th century Europeans considered the Americas any more inhabited than the Moon. Native populations were just another natural resource the New World was teeming with, not "people".
https://en.m.wikipedia.org/wiki/Valladolid_debate
Not that practice matched theory but...