IMO,it really depends on the material and the performers. Too much banter can be boring, but little to no set up is just as boring. Why not ask some of BWW's more famous cabaret performers such as robbie j, JRB, Eddie Varley, Sherman's Slave etc. All have experience in presenting cabaret.
This is not much different to seeing your favorite comedians. When their material is carefully lined up the segue is smooth. Ellen Degeris is a master at this, imo.
I prefer a short but sweet, or clever/interesting intro to a song. But if a story teller is really good, such as Sam Harris, his little stories are as good as his singing. He really sets up the crowd and his honesty and comedy is a dead on perfect transition into his vocals.
Much to my surprise, I thought Mandy Patinkin had the most poorly excuted dialouge I've ever heard. I know many think he's brilliant but I thought he was dumber than dumb. But he CAN sing! Just my view since you asked.
www.pbentertainmentinc.com
BWW regional writer "Philadelphia/South Jersey"