For me personally it's not much of an issue, it's just not that distracting. I just don't listen, and if someone addresses me directly I tell them I'm busy. I don't use headphones either because I tend to focus too much on the music.

I realize that this isn't viable for everyone, which is why I think we need more rooms for people to have that isolation when they need it.

edit: There certainly are times where I experience a lot of interruptions, and I'm glad for the after-hours when most people have left. But those interruptions are generally pretty necessary, because important things are happening. On the whole I think it is a net positive for teams that work together to be "on the floor" together.