If you install an electric cutout before the muffler, yes the system will become noticeably louder.
The cutout is basically a muffler delete.
The rationale for having it closer to the muffler is due to the direction of the exhaust gases, you don’t want that dumping right under where you’re sitting — for obvious reasons. Another reason is due to the resonate sound, you’d want it in the back.
It’ll probably sound very good under throttle but drone to the heavens while cruising — hence why it’s electric so you’ll just close the valve — to direct all exhaust through the muffler and therefore eliminate the drone.
I probably won’t do it on this platform but it’s practically for sound purposes only. It can be for performance purposes as well say for a heavily modified engine with cutouts immediately after the header but these types of builds are few and far in between.
I haven’t heard many good sounding 4 cylinders with a muffler delete but that’s personal opinion.