It's interesting. Had the shows all been like this, I'd say that it worked quite well. It is different in a number of ways, but Tim's gigantic onstage presence actually kind of brings a different kind of electricity that I like.
However, I think that judging from one great concert is a bad idea. There were many many concerts and lots of miles travelled; there was a developing problem, from what I understand.
Moods here are extremely high. We all know they were not always so high.
And Tim had less to do in future concerts after Mark Hart was re-added. After several months, what was once fresh and new became a gruel (particularly when the album didn't immediately take off) and it wasn't working anymore.
In my opinion, Tim's role in Crowded House as honoured guest (rather than dominant co-frontman) is the one that works best.