I play the piano and so do my kids (currently grade 4 and grade 6). We live in a terrace house. We have a lovely upright with a lovely sound. Our piano teacher (who graduated from the royal academy) has often commented on how good it sounds. She has a digital because she lives in a flat, and she says it just doesn’t compare.
We used to have the piano on an adjoining wall, but we moved it to a different wall and our neighbours say they can’t hear it anymore. We also use the practice pedal if playing late at night or before 10am.
When I’m out in my garden I can often hear other kids practising in neighbouring houses. It’s lovely and not at all a nuisance. It’s part of living in a town. I find it very soothing, even when it’s just scales and arpeggios - it’s part of learning how to do a beautiful thing, simply for pleasure. Certainly no worse than construction noise, cars, trampoline jumping etc.
An acoustic piano is a thing of beauty, with thousands of pieces put together perfectly - it’s a feat of old fashioned engineering. If you choose well, you can find one that will complement your style - ours is a warm colour and has a mid century aesthetic, which I love. Digital pianos are generally an eye sore.
If you are close to London, I’d recommend going to a piano auction - you can buy a piano for about one third of the retail price.