It doesn't involve selling the exhaust and it won't cost too much.
Two words:
Acoustical Insulation.
If you have a chance to remove the engine compartment cover, feel the inner walls of the engine bay. You will notice that smart has a rather thin layer of insulation. More like a carpeting barrier with a 1/8" thick fabric-like insulation. The objective is obvious to insulate the engine bay thermally and acoustically. Not to mention the insulation that lined the compartment cover is, well, really skimpy too.
Now, there are several types of acoustical insulation and the technical terms can get scary. Common measures are the Noise Reduction Coefficient (NRC) and Sound Transmission Loss (STL). Just standards the determine how good a material of a certain thickness reduce sound or transmit sound respectively.
Polyurethane foam seems to be a popular choice. But keep in mind, some foam are not heat, oil, chemical resistant. Polyurethane foams also have vinyl barriers, foil faced etc. The purpose is to enhance sound absorption. The foil faced foam also acts as a thermal insulation (or reflector). And then there's more commonly seen coned or egg-crate shaped foams.
So after doing some research, I ordered different foams and installed them. The available space in the engine bay is seriously constrained. Still I managed a few different designs and ideas.
The verdict? The exhaust note is quieter from inside the cabin. I will post pictures very soon after trying out a few more ideas. How much quieter in dB? Well, a digital sound meter should be on the way but I do plan to get it sorted out hopefully this weekend.