Author here for if you have questions on this chip...
Muting the audio would make more sense -- and would certainly have been familiar to the CB[1] radio operators of the day in the form of a squelch effect -- but this chip was targeted at consumers who expected it to behave like a conventional FM radio.
1: An early incarnation of social media, for better and worse
But I didn't think of this because it's an analog receiver. I thought it would just receive noise in the absence of a signal like its older brethren did.
It's a much more interesting chip than it initially appeared to be, that's for sure.