Actually, I've found this creates more social friction, not less. I spent a while listening to some books while working, and originally had noise canceling turned on. Every time someone came over to talk about something, whether I paused and turned noise canceling off or removed the ear pieces, there was always an awkward moment for the person talking to me while they had to stop what they were starting to say, wait for me and then usually apologize for interrupting. It felt extremely anti-social, and I think a part of that is that headphones were for a very long time considered anti-social and the act of removing them was often a signal that someone was interrupting you (and that you didn't really want to be interrupted). But when you're using headphones in a shared space, it's usually less about not wanting to be interrupted and more being considerate that not everyone wants to listen to the same things you're listening to.

Eventually I left them in transparency mode and kept the volume low enough that I could carry on a conversation over it, and could subtly reduce the volume while still holding a conversation. No more awkward pausing and restarting, no more apologies and the "hardest" thing I have to do is maybe rewind a bit after I'm done with the conversation. So much less anti-social feeling all around.

"Great for when you don't have your airpods with you"

Yes, and surely it will be normalized in the culture to just blast your watch in public.

I was doing retail work around COVID and there were many many people who didn't have the decency to hold phone calls while checking out let alone taking off headphones.

you can just do this. but sometimes your hands are full, or you dont have use of them, or you dont want to drop your airpod.