After training in a few different disciplines for a number of years I can't agree with you more about situational awareness. IMO it has to be the single most important aspect of self-defense (and all-around safety, honestly). I love that hands out of the pockets idea relating to being constantly aware of the people around you. I had a teacher once who would always say, "If you've gotten into a fight you've most likely already failed your training." Meaning that you've probably missed some things leading up to the fight that could have been avoided or altered to avoid contact.