I have seen it live with Lansbury (5 times), Daly, Lavin, Peters, Julia Murney, and Betty Buckley; on film / tape, I saw Russell, Midler and Staunton. Unfortunately, I missed Lupone's performance, due to a combination of factors (timing or trips, other things I wanted to see and, to be honest, as much as I enjoy Lupone, Gypsy burnout.
I think that Lansbury gave the single greatest musical performance by a female in 55 years of theatre going; I loved her Rose's Turn, especially the way she acted it, including her 'delusional' bows. Despite that, the version of Rose'sTurn that gives me goosebumps the most, including Merman's and Lupones, is not Lansbury's, it is Peters'. The way she sang 'welllllllllllllllllllll someone tell me when is it my turn' was just so perfect to me, and she is the only one who ever did it that way. I think it is (theatrical) criminality that she did not win the Tony for her performance. She was definitely #2 after Lansbury in any medium. It was a riskier performance that worked much better for me that the other really risky performance, Staunton's, which was awful.
I think she was hurt by the bad press that she received early in the run when she was having vocal problems. There was so much nastiness before the show even opened. By the time I saw it, a couple of months later, her voice was in fine form. (The same thing happened with Boyd Gaines in Company...I saw him in it twice a little further into the run, and his voice was in great form, but he got raked over the coals in the press before the damn thing even opened). I also think she lost because of the Hairspray juggernaut. As much as I loved Hairspray and Winokur's performance, her role / performance were not in the same league to me. (I also thought that Antonio Banderas should have won lead actor; I LOVE Harvey as much as anyone, and he was wonderful in the role, but it just didn't seem like a hard role to play and it was not a big role either.
IMO Gypsy has always had pretty low budget, pretty uninteresting sets, so I have to admit that I didn't really notice that the sets were minimalist. I thought that the glimpses of back stage added to the experiences others stated, and I seem to remember that there was a throwaway at one point where a stripper was walking back stage bare breasted. I am sure that Mendes wanted to say that burlesque was a lot grittier than other Gypsy's have conveyed, but it was not necessary (and over so quickly that I am sure a lot of folks missed it altogether.
The worst Rose IMO:Live -- Betty Buckley; taped / filmed -- Staunton, although I have always felt that Russell and Midler both overacted (in a role that allows much latitude to begin with).