Yes, it includes the whole shabang.
The M8 is not silent; this is the main complaint, specially from those that don't own one.
I have noticed that the shutter on my M8 is a little softer compared to earlier this year. So what Jaap said may have a lot to do with it. I don't know if I've taken over 8000 photos with it, maybe half of that. I'll take a look at the counter and use my hex-to-dec converter.
Like Erik said, with a camera case, the sound is dampened. As a matter of fact, many people find the shutter not disturbing/disquieting at all, except, of course, when you could hear a pin drop.
The M7 sounds like the M8, if only a bit quieter, and that may have to do with the automatic recocking of the shutter by the M8.