They almost stopped being our friends after a few months. In order to save the friendship, we had to ask them to leave. One of the major problems was that it was affecting our love live because we didn't want anyone hearing us. I can't imagine how much worse it would be with kids.
1. We've had some of DW's family over for a few days at a time in the past on visits. After a few days, it starts to get on your nerves because all of the usual things that you do, you just can't.
a. Leave the bathroom door open. Can't do that when family is around the corner.
b. Walk around in just a t-shirt and underwear (or less). Being around others all the time means that sweatpants etc must be worn at all times when you are just used to being in 'comfy' mode all around the house.
c. You can't just really be yourselves unless you are locked away in private. That is, talk about things you really want to talk about, because someone else might overhear you, or that subject is something that you and your spouse/SO can talk about without embarrassment, but someone else? err..no.
Having others over for months? I can't imagine that.
2. Effect of kids with privacy, etc?
When I was growing up, my bedroom was downstairs, right below my parent's bedroom. Literally. When I was younger, I wondered what that squeak, squeak etc that I heard upstairs was. (Also helped when you could hear them arguing very loudly and being able to tell what the hell they were arguing about...not fun).

Needless to say, as I grew up, I learned. I can't imagine trying to "keep quiet" because the kids bedrooms are right downstairs and/or right next door. Is it something that parents have to do to train themselves to not let go and let out their passions? I don't know -- but it is not something that I want to find out.
Let's just say that a banshee could be considered quieter than I am...
