Because there were questions as to how audible the system is from inside the car I created a short little video that demonstrates the sound from outside the car, inside the car with windows down and inside the car with windows up. I chose the quietest possible location to record at... My garage. 2012 Prius Vehicle Proximity Notification System - YouTube Bah! It won't embed the video.
And that is in a quiet garage. In normal driving situations you would never hear it with the window up and you can barely hear it with the window down if you are in a quiet area at night.
I only hear it in my garage or in drive-thru lanes, when the building is next to me reflecting back the sound.
I removed mine last weekend. I removed the driver side front wheel and inside wheel well cover to expose mine. Took about 40 minutes.
I posted a simple disconnection method -- one screw only -- here: http://priuschat.com/forums/toyota-prius-plug-in/106727-nobody-hears-proximity-warning-7.html
So that's what that sound is...lol...I've had mine for less that a week and my wife said it sounded like a space ship when we were pulling into the garage with the windows up.
My wife drove our rental Prius by me in a parking lot and I could not hear the space ship speaker one bit. She was in EV mode too. I can hear it going under bridges in town but that is it. Waste of parts having it on the car. Mike Mobile on my SGH-i717