Yes, you are correct. The early Z4 E85 used a special tube to bring engine noises inside the car's cabin. But in the newer model E89, they use the audio system to make fake engine sounds that you can hear while driving. In E89, you can usually turn off the engine sound feature if desired. This often needs special BMW coding software and may take some technical knowledge or expert assistance to make these changes. Maybe good idea to speak with coding expert or BMW specialist to ensure it is done in right way.