I must say, if I listen to music while cycling, it does block out the surrounding. It's not the sound, per se, it's something that happens in my head. I get involved in the music and stop paying attention around me. It does not happen while driving and it does not happen with talk. So - duh! - I don't listen to music while cycling, but happily listen to podcasts.
I'm not saying this applies here, in fact I don't think it does. She was an adult and an experienced cyclist. If she zoned out with music the way I do, I'm sure she wouldn't have listened to it. And we don't even know if she was listening to anything.
Normally I am as against the Daily Mail as anyone, but this example seems to be a perfectly acceptable article, publishing something in public interest that no one else seems to have published. The last article about this collision on the Yorkshire Post site is calling it a hit and run where the driver speed away. Clicking this article is probably ok, and may even be a good thing, leading to more actual journalism on the site, rather than commentary on youtube clips and important celebrity side-boob updates.