Yes it is easier to keep engine noise down with water-jacketing. And mandated drive-by noise limits are becoming more stringent all the time.
It is also easier to get stronger performance, as water-cooling keeps the engine components more stable, permitting closer tolerances - particularly between piston and bore. This also permits water-cooled engines to run 'cleaner'.
But of course water-cooled engines are generally heavier than an air-cooled equivalent. And have a vulnerability to radiator damage or coolant loss which doesn't affect an air-cooled.
So you win some, you lose some..