First off - just guttin' the kit pipe and stickin' a air freshener can on the end does
not a tuned pipe make. Nor would a kit pipe w/o any internals or an end cap be accurately called a muffler.
I would think that when you were talking to the guy he didn't think "the muffler was just open without the cap" as that's not a system at all - that's just broken. He was prolly thinkin' that like most
quality two strokes it had a stock (perhaps primitive) tuned exhaust, much like Rotax comes equipped with (better than our kit pipes, but benefits from an upgrade to aftermarket).
I think I know where his "WHOA WHOA WHOA" came from & I'd agree - that "what appears to be a rolled up piece of cardboard" you refer too is most likely a catalytic converter, and
that has no place on a two stroke if you expect any performance for long - they tend to clog w/unspent oil & carbon, and that does indeed contribute to having "WAAAAAAYYYYY" too much backpressure.
The sound (relative loudness) of an exhaust alone has very little to do with performance - just because it's loud doesn't mean it's superior & just because it's quiet doesn't mean there's a loss of power - THAT is personal preference alone and if ya like loud - so be it. Yet if you're trying to get the most
performance out of yer engine by modifying/replacing your exhaust, that's a different topic entirely & there's gonna be very little you can do with a stock pipe - though I would recommend ridding yourself of a catalytic converter, even that is a matter of it clogging up & essentially being defective.
What a two-smoker
needs to achieve a performance gain;
Go check out some true racing 2 strokes sometime & you'll notice Honda, Yamaha, Suzuki - heck, not even Kawasaki is sportin' hacked up air fresheners, funny 'nuff - they've all got expansion chambers, even silencers OMG