I don't think the onstage section was an option on Telecharge, but they definitely planned it ahead of time because it was printed on my ticket. They did also oversell - I saw people standing in the back of the house.
Aside from shyness issues, I don't recommend the onstage seating - you get a great view of the backs of everyone's heads and not much else. The performers interacted a little, but mostly just because they kept acknowledging how awkward the setup was. Also there was a door to backstage right behind the group of chairs, and some of the performers stood back there and talked the whole time - I know it's a casual, fun show and people talk all the time, but that was still kind of distracting.
The guy can sing anything- look what he had to work with- people who didn't know the difference between an adverb and a noun. He did a great job- I enjoyed it and he's always nice to look at.
By him destroying it, I meant that he completely rushed over the words so you couldn't even understand what he was saying. He can definitely sing, but he still royally messed this one up.