If you really want quiet, get a CO2 tank. They cost a bit to get setup, and there is the requirement that they need to get refilled, but I've heard of people using them and they swear by (as opposed to at) them. I've also heard that (depending on your use) they can last months before refilling. All you hear is a hissssss. And CO2 is "dry" as in no moisture formed.
The major reason the smaller compressors are more popular is due more to the fact that people often live in small houses, or in apartments, where the large stand along "garage" type compressors are just too big and too loud. And air tanks alone still need to be filled, and for many people that means a trip to the local gas station for air.
I use a garage type compressor, though a fairly small and inexpensive version, and which was an upgrade from a small hobby compressor. The tank settles out any pulsations and I'm lucky to be able to plumb a hose into my house (benefit of ownership vs. rent!). Another way of dealing with pulsation is to use a 10' hose (which the compressor you linked to has!). While it doesn't completely eliminate the pulsation, the length of hose minimizes it to a manageable effect. The noise is another matter. I've heard they are comparable to a vacuum cleaner, and who wants to run one of those while painting?
One of those Harbor Freight compressors, combined with their 5 gallon air tank, a few bucks worth of hose and fittings and you can have a tanked compressor for about half of one from Airbrush City. It would be as pretty, but will still be useful. It would take a while to fill the tank, but would last a couple of weeks. While water build up in the tank is a concern, I find that it's not as bad as it sounds. I dutifully emptied my 3 gallon tank after every use for a year and never had a drip of water come out. Now I just drain it off every couple of weeks and still haven't seen any moisture. However I live in a fairly dry climate. Somebody in Louisiana or Georgia might have a different story to tell!
I will also state that once my compressor goes to the "big garage in the sky" I'm replacing it with a Silentaire or similar super quiet compressor that can run in my hobby room, without waking the dead!