Agreed with just about everything noted here.
We also go for the "number 2's" quite often. It's great to see the audience reaction when they say "oh, wow, I haven't heard this for ever! But I love it!!"
Most of your list is standard bar hits, and will definitely go over well.
Be careful of "Thriller" because it will be painfully obvious if you don't do it well.
That's the problem with songs people know so inherently. They know how it is supposed to sound and will dump on you if you massacre it.
We try to find songs that people know, but haven't been played to death by crap cover bands. Or, if we have a female singer, we'll change it up with songs by male singers (or vice versa). Keep em guessing!
Your band, even if it's a party band, needs a point of difference from everyone else out there. Otherwise, there really is no reason a bar should employ you.
Our method is:
set one: moderately paced tunes, some hits, get people in the mood. They are still having their first few beverages and want to chat and get into the night
Set two: ramp it up with popular tracks and inject some very dancey, funky stuff. Get them on the dance floor and drinking some more
Set three: pull out the big guns, really go to town with singalongs and anthems, and good old rocknroll.
Encore: two (at most) songs that kill, but the ending needs to be memorable. Lighters in the air, or everyone singing, and some happy jams or throw outs.
Things we always do:
Always thank the crowd for coming out.
Always thank the bar staff and venue.
Always be humble and gracious after the gig when the drunk guy tells you how great you are.
End leaving the punters wanting more. Don't keep playing because they are into it. A last song is a last song.
Things we never do:
Play for longer than the venue asks us to. In our town, there are residential noise restrictions and the venue can get into trouble if we go over the finish time.
Play requests that we don't know.
Allow random people onto our stage to sit in. We are professional, this is a show. We know what we are going to present.
Show up late, be drunk, get annoyed when sound goes wrong, get pissed off with the crowd if they aren't into it....list is endless.
Hope this helps!
cronks