We'll agree to disagree then @OrvCraig because every live show I've ever attended or every gig I played was made better with audience participation, crowd engagement, and all that stuff. Some of my best memories were shouting along with the crowd and feeling like I was a part of something, like I belonged.
Audience participation for the win! Bands exclaiming "Clap your hands!" or "let's see you make some noise!" is fun and I love it! Yeah, sometimes it might feel try-hard, but I gotta respect them trying hard to get the crowd going. Even if it goes completely wrong, at least it's never boring.
I think this falls under "read the room". If your audience wants more engagement, they'll let you know pretty clearly.
I'll never forget being in some art gallery / venue / bar in Portland, back in 2011, and there was some out of town Indie Rock originals band that nobody had heard of, playing to about 25 people.
Suddenly, during a song they were particularly proud of, their keyboard player launched a PowerPoint presentation from his laptop, synchronised with their additional synth and vocals backing tracks, that displayed the lyrics - replete with a ball bouncing along the top of the relevant lyric, and including vocal "whoa-ooh" bits - projected onto the backdrop.
Five guys crammed onto a tiny stage in the corner of a room full (well, empty actually) of people that couldn't give a crap.
I was with my friend, who was the drummer in another band; and I've never seen anyone in more severe danger of literally having their sides split - she was rolling around on the floor crying with laughter, and gasping for air.
I narrowly avoided pi$$1ng my pants...
Narrowly!