An aircraft engine isn't mounted on really soft mounts as auto engines are, mostly because the thrust and gyroscopic forces would move the engine around too much if it was. So more of the mechanical noise of the engine comes into the cabin, which happens (usually) to have the engine mounting bulkhead, the firewall, as the front wall of the cabin. A car has its engine mounted some structural distance away.
That propeller makes a lot of noise, not just from the pulsating airflow but there's a constant roar coming off the tips, too. Bystanders off to the side hear a buzz, but anyone roughly centered behind the prop hears that constant racket. Similarly, helicopter occupants don't hear the whup-whup sound that those on the ground do.
Aircraft mufflers aren't well downstream from the engine. They're right there, getting all that flame, and being shaken to bits as well because they're mounted to that vibrating engine. A car's muffler has some pipe ahead of it to radiate and convect some of the heat away, and it's isolated from the engine's direct vibration. And yet a car's exhaust system would burn out pretty quick, too, if it was being run at 75% power for hours on end.
Some European homebuilders use what's called a "Swiss Muffler" that's mounted under the fuselage and has a long, flexible pipe to it. It exhausts aft of the cabin and that exhaust is often so quiet that at some fly-ins the airplane must be preceded by a pilot car because there's too little noise to alert pedestrians. They use this due to aircraft noise regulations in some of those countries.
Certification costs, of course, are nonexistent. One reason why kitplanes and homebuilts are representing such a large percentage of new aircraft registrations now.
Dan