I think it's a really important scene, and I'm sad that it was cut from the movie.
Side note: the (extremely well-done) Star Wars Radio Drama [0] included a great many expanded scenes on Tattoine (with quite a bit of expansoin on Tosche Station), and I think those scenes (which include the aforementioned scene with Biggs) really add to the richness and flavor of the setting.
If you're a fan of Star Wars and haven't yet listened to the radio drama, I highly recommend it!
In the scene where the sand people shoot R2D2, it looked like the other way around so it was quite confusing to see them captured in the next frame. Who knew the little guy didn't have a blaster?