I will try to explain it further. There are, according to the above image, 11,257 total villages. There are a total of 8,703 players. When you divide the two numbers you get 1.28 villages per player. It does not tell you how many player villages per player there are. It tells you how many total villages per player there are. Total villages encompasses player village, barbarian villages, and bonus villages.
Hopefully this completely clarifies what that number signifies. If you have more questions, post below.