When we are listening to music on the media player through the loudspeaker, if a sms comes in between we only get a very faint sound notification. There is a very high chance you will miss it completely if you are not looking at the phone.
Ideally, the music should stop for a sec or so,the sms notification should play the default tone loud enough and then the music should resume..
I've just noticed this as well. I am sure it used to make the sms notification sound. Now it makes a tiny little beep, which you can notice if you have headphones in but not if its playing through the speakers.
Further Note:- While watching video (Can only confirm while using iplayer) iplayer mutes, it gives the sms notification sounds then it resumes audio from iplayer.
I was listening to music ages ago on the bus and I got an alert with the flashing led. I had the headset half on and there was a beep but I was sure that the sound came from the handset speaker and not through the headset - I remember thinking how odd that was - but unfortunately I cannot remember if it was a sms or new email alert. Anyway this was way back on the original firmware, I'm going to test this out later and vote on the bug if I can replicate it.