For me, nothing beats a clubroom with no PA, and being able to sit only a few feet away from the artist or group. Most of the acts I like are at their best in this sort of setting, and the most memorable performances I've seeen are almost all of this type. The performer can talk to the audience as they'd talk to a group of friends, and there's no distraction caused by the technicalities of the sound system. Even at festivals, a morning "meet-the-artist" session in a hall or tent will often be preferable (to me) to a big marquee concert appearance by the same act.

And in my experience, there are far more distractions in a big marquee, with people eating snacks, chatting, texting, moving around, and sometimes paying little attention to what's going on on stage. Sure, a club night may have the dull floor spots, the raffle, the announcements, etc, but once the booked performance starts, distractions are usually minimal, and the attentiveness and engagement of the audience can be quite magical.

Marje