I think the tenacity to deliver a product is great and hope that you get good feedback here. Congratulations on shipping a second version.
I had thought that noise machines were primarily for people who would be listening. For example, therapists put white noise machines in the waiting area, not where the session is occuring.
So, this sound provides the sense of privacy but would be better set up outside the bathroom to those who might hear, uh, human sounds inside.
You and other commenters make it sound obvious, but I'd say the ideal location of the cover-up noise is actually a tricky question. Our brains are exceedingly good at separating different sound sources, but a bathroom is a textbook example of a space that gives a shared acoustic profile to all the sounds within, causing them to be grouped together in our minds, and possibly identified as a single source.
As a thought experiment, imagine that the Loodio is actually playing loud farting/plopping noises. In that case, placing it outside the bathroom would make it easy to distinguish between the "real" and the "fake" noises: the real ones have the bathroom acoustics. Placing it inside would make it impossible to discern.
Now imagine that the Loodio is playing dubstep, which is barely a step removed from "loud farting/plopping noises". What is the ideal location now?
Yeah, there's an interesting effect of people in the shower being unable to hear those outside but those outside can hear those in the shower very well. It's fairly obvious when thought about that the relative amplitude of the noise source is much higher for the person stood next to it than further away.
I had thought that noise machines were primarily for people who would be listening. For example, therapists put white noise machines in the waiting area, not where the session is occuring.
So, this sound provides the sense of privacy but would be better set up outside the bathroom to those who might hear, uh, human sounds inside.