Mine have always been in my living room. Wife and kid are fine with it, don't play much but say they look awesome. They're on the other side of the room from the big tv/av, noise isn't really a problem at all. Of course we also have an 8' by 4' bean bag instead of a couch, so we may not be the norm. Also my pc is at my recliner...
I have a garage I could easily convert to use, but if I don't keep my things near me in sight I tend to be lazy and never deal with them. Also if I was out there all the time the girls and their things would all be there to be near me anyways so whats the point.
So at some point I'll be looking to make my living room bigger I guess....