I agree. If there was a way to closely synchronize the high frequency sounds, which are compatible with tiny speakers, with low frequency sounds that can be played on a subwoofer under the layout via JMRI Virtual Sound Decoder, that would be great. The human ear can detect direction of higher frequencies coming from the locomotive, but not the lower ones coming from the subwoofer (the distance between our ears is not long enough). You could also use a large scale sound decoder, wired to the track bus, that drives a sizeable speaker located under the layout, and consist the large decoder with the locomotive on the track.
Sound does not scale well. Watching a train go bye at 500 yards/meters sounds very different than it would waiting at a crossing. You get all those scale distances on your average layout. If you have the boom boxes under the layout woofing away shaking the floor when the train goes by in front of you, it just does not sound right when it is off at one of the ends of the layout. I personally find N scale sound rather annoying after a while and shut it off.
Were there any holes in the car floor, or was the sound playing through the solid body/floor of the car? Did you try using an equalizer to alter the frequency response and possibly make the sound quality less "tinny?"
Just waiting on the RailSmith cars to see what is left to fill in. I have a bunch of extra passenger cars to use to fill in what is still needed. Painter is getting ready......