Yes, I thought it followed from "horse opera" too. I think the idea behind both terms is that the setting is largely just a backdrop, and the story could be transposed to another setting without too much effort. I don't think that's really true these days, but they technologies behind the interstellar empires are often just taken for granted.
Space opera is anything with interstellar travel, alien races, and all that.
I'd recommend Iain Banks and Alastair Reynolds.
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