All good points, but it depends entirely on the venue. When playing a dance, keeping the music going is a priority. Maybe even doing some limited talking during the intro of a song, or the transition between songs (with your music still playing). One of the neat things about the AK, is being able to either shorten or extend the length of a song according to what's going on the dance floor... playing the room. That's where you also have to "feel" how much jib-jab is appropriate.
On the other hand, when you're doing a senior home, it's usually a concert type venue and I generally talk to the audience between every song. Sometimes with song info and sometimes to interject humor. Developing a rapore with the folks.