Random generator thoughts acquired as I've wired my house to use a portable generator as a manually connected/switched backup. In hindsight wish I'd bitten the bullet ($) and installed an automatic whole-house solution.
Adding a better muffler to a B&S generator doesn't do much except reveal the other internal noises that the exhaust noise was hiding---it's still loud. Ditto what others have said.
Flexible exhaust pipe is not gas-tight. If you need gas-tight, you must use the bellows-type of exhaust piping.
One brand of acoustical deadening material is made by Acoustiblok. Never got around to trying their material as it was where I stopped looking when I decided to switch to a quieter generator.
http://www.acoustiblok.com/The little HF800 generator is way louder than the little Honda. Easy to find YouTube videos demonstrating this. Don't think a bigger muffler would help it much. (I don't know. But it doesn't make sense to me that anyone would put a loud muffler on a quiet generator... so assume generator is not inherently quiet.)
You can buy pre-built generator enclosures, or retrofit an existing shed for generator use from No Outage. Or seeing what they offer, can give you some ideas to roll your own.
http://www.nooutage.com/portable_gen_ac ... ccessoriesBottom line. The easiest way to have a quieter generator, is to start with a quieter generator ($).