I hate it, when I stand in the college of bards in the second floor, and I can hear this grumpy cook chewing on food all the time in the cellar, as if he sat right next to me. And even more annoying is this situation in dungeons, when you are startled by a loud noise directly behind you, and when you turn around you just see a huge stonewall, behind which someone made a noise (but it sounded as if there was no wall at all).
It seems to me, that it doesn't matter (audio-wise) if a NPC or Monster stands directly next to you or there is a 2 meter thick stone wall between you and him.
Do you expereince this as well? Is there a way to fix this somehow?