Of course, this changes if alcohol is involved.
I get the feeling that showcasing some skill in a public fashion is loved in the USA, not so much in the UK. We typically want to sit and not disturb others, and find any other kind of disturbance awkward; we try to sit quietly and pretend it isn't even happening, eg. not even looking at the person making the disturbance. eg. some people arguing at the back of the bus probably won't make people at the front of the bus turn around or tell them to shut up.
I think this is a bit different than busking which tends to be relegated to locations where people aren't required to hang around for long periods of time (like outside a metro station where someone enjoying your music can stay and chill for a while or just continue into the relative quiet of the station platform.
I don't have as much of a problem with street-corner busking, in large part because it can be avoided, but even that drives me nuts when I can't get away from it (outside a place I work, for example).
I love music, and when I'm in the mood, I'll seek out a street performance. City parks are great for this, and I think they're an appropriate venue. A rail car is not even remotely appropriate, and a subway station during your unavoidable morning commute, with loud brass instruments and a shitty PA system, echoing off the walls, ought to be a crime.
Yes, even if the guy is really good. You can stand not being the center of attention for a few hours.
I personally think a well-executed acoustic guitar singalong can add a lot of real joy to any group experience.
I've played in rock bands since I was 15 (I'm north of 50 now), and I've been on stage in front of a thousand people and I've played to killer mosh pits and all that, but my best memories of all those years were the after-parties where it was just me and my bassist with acoustics and a room full of drunk people singing along to the Eagles or Sublime or maybe even Weezer...
Now, it helps to have a professional level acoustic guitar and, of course, a professional lead singer to hide everyone's mistakes, but it can be a magical, cathartic experience when the room all sings at the top of their lungs...
Great memories.