Given that environment, what do you do when you're trying to concentrate on a particularly challenging issue and you need to tune out the chatter and what others are doing?
For me personally it's not much of an issue, it's just not that distracting. I just don't listen, and if someone addresses me directly I tell them I'm busy. I don't use headphones either because I tend to focus too much on the music.
I realize that this isn't viable for everyone, which is why I think we need more rooms for people to have that isolation when they need it.
edit: There certainly are times where I experience a lot of interruptions, and I'm glad for the after-hours when most people have left. But those interruptions are generally pretty necessary, because important things are happening. On the whole I think it is a net positive for teams that work together to be "on the floor" together.
I think if you have a good culture around open offices, then it's a lot better. If you have a bunch of people who have loud conversations without moving it to a meeting room, interrupt you constantly, don't respect the headphone rule, micromange and shoulder surf vs. treat it as the quiet library environment it should be then it can pretty bad.