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it emitted sound pulses which also broadcasted the U-boat’s location
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That´s exactly the question. Could any S-Gerät or Echolot sound be heard by other vessels or not? No doubt, the Germans feared this, but they also feared the Metox beeing a homing beacon, what it definitely not was.
Btw., 4.000m seems to be very much overall. The british ASDIC type 123 had a efficient range of only 1.200m to 1.500m (depending on... source
). Even with a range of only 2.000m, the S-Gerät would be superior to the British ASDIC, which was based on a development since 1919, whereas the Germans began their work on sonar in the middle of the 30´s.