The majority of pubs seeking exemption want to put on electric music. That is precisely the sort of music most likely to create disturbance and the need to invoke non-Licensing Act measures regarding noise and nuisance
The only point being confused is that the Licensing Act 2003 is not the correct legislation to deal with any form noise nuisance. The pretence that the requiement for additional entertainment licensing in advance can do anything but only further confuse an already confused situation for noise issues, is now a very smelly red-herring which could and should have been buried some time ago.
Any premises which obtained exemptions under either the proposed exemption or the Act's many existing exemptions - are still subject to the Envirionmental Protection Act. If this was not thought adequate to deal with noise - there would be a call from the LGA Group lobby to remove the Act's existing exemptions. There is no such call.