K.W.
At my daughter's preschool they mix it up. Sometimes they do recorded stories and sometimes they read aloud in person. The CD versions/audio stories tend to have really good narrators and/or music (think Peter and the Wolf) that contribute to the experience.
I can't comment on the "blaring" aspect of the audio.
You might want to ask them why they choose to use audio recordings, and if this is something they always do, or if they also read aloud.