I think it could serve to accomplish all of your poll options, as well as some more. Just about everyone I talk to complains how music would "ruin" diving and "obviously" cause more fatalities because people ignore what's important.
I'm what some would call obsessed when it comes to music. I have a library that encompasses most genres of music out there, from Bad Religion and Choking Victem to Tchaikovsky and Mozart, and just about everything in between. When I wake up in the morning, the first thing I do is turn on my stereo, when I get on my bike to head to school, I turn on my mp3 player, through school, from the time I get there until the time I leave I'm listening to music (unless of course I'm at a lecture or in a conversation..any time that doesn't require my ears I'm listening to music) I listen to music on the ride home, and I listen to music as I'm doing my homework, cleaning up the house, whatever...When I go to bed, I have my stereo on. The only time I don't listen to music is in the shower, and only because I'm too cheap for any kind of waterproof stereo.
I think there's a good chance it could reduce buddy awareness, but how often do you talk to your buddy underwater anyway? I can read or do math in my head no problem while I've got my headphones on...So who's going to tell me I wouldn't be able to ask how much air my buddy has and comprehend the elementary level sign language?
I can definitely see some people getting reckless or just flat out stupid with music, but what in our lives doesn't require some level of self-regulation? Personally, I love the idea of having music underwater - but maybe that's just me.