I think that was the best of both worlds, people that are late didn't miss the play because they could see part of it on a TV screen until there was a break like a big scene change or the interval and the people inside were not disturbed.
I will admit that it is partly my personality that it bothers me so much, most of my friends don't mind people that talk either.. I end up watching all the late comers making everyone stand up more than concentrating on the play.