The w/g dumping to the atmo can be loud and the shorter the dump pipe, the louder it will be. However, it should only be dumping at full boost when the w/g is diverting exhaust from the turbine housing/wheel. If it is "loud" any other time, then there is something wrong with it. As for loud, that is relative. You get used to the hushed sound of a turbo exhaust then switch to the "angry pack of bees" sound and you will notice it. As for using the electric cutout, that is definitely another option but what is the difference? Actually, the cutout will be louder since you are dumping out of a 3" pipe vs 1.5" or slightly larger. As for the benefits, it depends on the HP and DP/exhaust diameter. If you are running closer to stock levels and have a decent DP and exhaust, then it is probably not worth it. If you are running a T04 then it is assumed you will be making enough HP to see a gain. It is all about reducing back pressure in the exhaust and the better function of the external w/g.
I just modified mine to dump to the atmo because I am at the point where I should see a gain over my 3" DP.