No, I mean the Wookies would live on "No Tech/Forest Planet" or whatever, just like the Ewoks. Chewbacca would be the one exception.
I remember reading one backstory about Han and Chewie, but don't know if it's "canon:" Chewie was enslaved by the Empire. Han Solo was a pilot for the Empire. When he saw Chewbacca's abuse (and maybe that of a whole bunch of Wookies used as slave labor), he freed them and thus became a fugitive. This explains his supreme piloting skills (he joined the military because that was the place for the best pilots, not out of any specific political loyalty), his rogue lifestyle, his strong natural sense of morals, and his association with Chewie. Also, IIRC, Chewie tagged along with Solo to act as his bodyguard and to look out for him as a way to return the favor.
This could have taken 5 minutes to explain.
Since the Empire already had a presence there, it is reasonable they would use the strong Wookie population as slave labor. Chewie's return as a free wookie and the coming of the rebellion could incite the wookies to rebel.
I personally think this would have been wonderful. Not only would it be a Nature defeats Technology thing, but also a slave revolt. It would also put a more "human" (heh) face on the population that the Empire was oppressing (we never really see many people suffer under the Empire, only our heroes).
It sure would have beat the Teddy Bear War.