The Palm Theater is a great addition for NightGrass. Do not worry, if you are at Telluride, and Nightgrass in particular, you do not need to worry about people sitting still. My (vague) recollection of the show that I saw there (TBT in 2011 as well) is all great. There are seats as the map indicates but everyone who wanted to dance was dancing in their place and the "walkway" and front orchestra were definitely dancing zones. Plus it's huge which is great for the energy in the room... (and allows for the tired ones-see above-to enjoy the show as well)
It is a different experience than the Sheridan or Fly Me to the Moon but different is not bad.
Do not worry young grasshopper.
Listening to:
NPR All Songs "The Year in Music (So Far)"