I did not find any other reports about this problem, so here it goes:
In Minecraft, the sounds that are far away from the player seem too intense. And when the sound is played a bit further away, it abruptly gets quiet (See graph 1). This has to do with the fact that Minecraft uses a linear way of calculating sound intensity for the distance. In real life, it is more like a curve. See attached graphs.
It's just a minor thing, and easy to fix, but still a noticeable flaw.
EDIT: This is what the calculation should be:
SoundVolume = 1 / ( Distance^2 - 1 )
This creates a curve similar to graph 2. SoundVolume = 1 means 100%, 0.5 means 50% etc.
When Distance is 0, SoundVolume is 100%. When the distance increases, the SoundVolume decreases.
This shouldn't be too hard to implement.