No, not really.
Following what happened in the battle of Mogadishu, US soldiers are required to carry their combat equipment whenever on a mission, even if they don't want to. And that protective gear is part of the standard equipment issued (except, maybe, the ear muffs? Not sure about those, though earplugs are very common).
With that I agree with you, since even though it is designed to have minimal backblast, it still does. And as a weapon, is not that effective in urban environment, since it has a rather long (for urban warfare) prep time, making it very hard to engage targets of opportunity.
But of all the weapons avaiable, it's probably the only one you can fire in an emergency from a room that's smaller than the minimum required safe size (12x15 feet with a door, by the way) without killing yourself.