"What are the things you find that your audience wants/realizes or appreciates the most in a live performance?"

I would say:

1) showing up for the performance
2) showering just before you come and having your fingernails neatly trimmed
3) the type of vehicle you arrived in (a Maserati or a Chinese rickshaw?)
4) not discussing politics
5) not inviting your son's Cub Scout pack to be on stage with you
6) having your girl friend on the stage with you (but only if she has great frontal cleavage)
7) not holding a bottle of Poland Spring drinking water in your hand throughout the show
8) looking up from your instrument and looking directly at your audience once in a while (applies to Barack Obama also)
9) having a minimum high school education
10) able to play a song with at least ONE of your hands
11) wearing sox and closed shoes
12) not using a pair of refrigerators instead of speakers
13) passing out free ear plugs before you crank up the volume to what you would hear if you were standing next to a 747 on takeoff
14) at least one song during the performance that they recognize
15) survey sheets handed out after the show that only have "yes" boxes to check and with questions like "Did you enjoy the music?" ...."Would you come back to see another show" "Would you care to donate to the OMB Retirement Fund?" (saves embarrassment for a bad performer)

In reality, every single audience is different. Even if you're playing in the same club every night or playing the same type of music in different places. So, in answer to "What are the things you find that your audience wants/realizes or appreciates the most in a live performance?"...I'd say ALL of what you fellows wrote. But the real art is in being able to "read" that audience that's in front of you at the moment and determine what is the most important to this particular group.

My own formula is to be an accomplished musician, but spend more time talking in between songs. And......Zuki is right: "music ability" sadly at #5. After reaching a certain level of expertise, the return on your "investment" (practicing) diminishes out of proportion to your effort!

Lucky