You've got it. The audience sounds are still there and are not reduced in level, but the way in which that is portrayed and perceived during playback is different. The audience sound pickup is directly related to the how room ambience is picked up and portrayed - both are more-diffuse, and open and "out there", perceptually separated to some degree from the music of interest which is more highly focused in the center front quadrant. The wide omni spacing does this in an increasing way for direct sound which arrives further off the central axis and especially so for the diffuse sound which is effectively arriving from all directions (in this case that diffuse audience sound component is more murmur and general din, as opposed to any specifically identifiable audience sounds).
Acually, due to the omnis we're most likely picking up more audience and room sound from all directions than we would using a single pair of directional mics, yet that content (at least the room sound and the desirable audience reaction) is less in conflict with the music because of the OMT arrangement because it picks up the direct sound and the room/audience sound in different ways before we combine them. Of course there remains a lot of overlap between them, and that's a good thing. But the differentiation is important and useful.
To take best advantage of that differentiation, it helps to keep the central mic pair as focused on the direct sound pickup from stage and PA as possible, with the omnis less intentionally focused on that and more oriented on the diffuse sound arriving from all directions. So more-directional PAS center pairs are helpful for maximizing direct sound pickup from stage and PA, and a coincident arrangement of the center pair is helpful in producing a tighter and highly-correlated type of stereo for that direct sound component (contrasting against the more-decorrelated and diffuse omni pickup of room/audience). Omnis which don't especially favor the forward direction are helpful, achieved by using miniature omnis which have less directionality due to their small size, or omnis with diffuse grids like the AKGs rocksuitcase and kindms are using, or pointing more directional omnis sideways or backwards. And spacing the omnis as far as practical helps decorrelate the diffuse pickup to a lower frequency, narrows the SRA angle of the omnis, meaning more of the off-axis audience direct sound pickup by them will image far-left or far-right leaving room for the center pair stereo stuff in the middle.
The other thing which spacing the omnis sufficiently helps with is audience sounds close by the recording position. Close sources will tend to be considerably louder in one omni than the other and that will cause them to image further to one side or the other, leaving more perceptual separation between that and the music which is imaging more tightly in the center, allowing it to be more easily perceptually ignored even though its still there (cocktail party effect). Again, the setup is actually more sensitive to close audience sounds due to the omnis, but the arrangement helps to make that seem less in conflict with the music.