Absolutely ... it makes a huge difference. Its impossible to have the same view of the action from the last row of the balcony as from 8th row center orchestra. I saw Boy from Oz twice ... first time from 2nd row center orchestra ... and I was blown away by Jackman's performance and really enjoyed the show. Second time I was in the rear mezz and was bored to death. Even Jackman's performance couldn't "reach the rafters".
Also, with the price of tickets today, if I'm going to spend $120 on tickets, they're going to be great seats. Why would I spend that kind of money to sit in last row orchestra all the way on the side when for the same money I could sit in 8th row center orchestra at a different performance? I'm lucky to be a New Yorker, so I have the luxury of waiting for dates when better seats are available. Whenever I go the box office to buy tix, I always ask for the best location available, rather than focussing on a particular date. I always know my out-dates, so its very easy to say "please find me the best pair in center orchestra you can, any evening except(whatever date I can't make it). Quite often, the reply from the box office is "Can you go tonite?" or "How about tomorrow night?" Funny how nowadays, it seems like the best way to get great seats is last minute rather than buying them months in advance. I have a feeling for a lot of shows, its unsold premium seats that are being released at regular price a day or two before the performance.