Partly true, but incomplete. The exhaust is often the loudest single source on a bare engine, but a proper exhaust silencer typically reduces exhaust noise below the mechanical and combustion noise of the engine block. Once that's done, the dominant noise sources are: mechanical noise from the engine and alternator (structure-borne and airborne), cooling airflow through ventilation openings, and radiated noise from enclosure panels. All need to be addressed. A good exhaust silencer alone will not achieve 65 dB(A).