Made my first trip to Lee's Palace in years this weekend, and I don't think the place has changed since the first time I stepped foot in the place. This place is a staple of the Annex, and Toronto's live music scene on the whole, so respect should be given for that.
One thing I do like about the place is that the stage is raised, which creates good sight lines whether you want to be in the slightly lowered dancefloor up front or the other levels splitting the room between the stage and the bar. Sound is a good clarity and volume. Lighting admittedly rather low fidelity in comparison.
Drinks at the bar are reasonably priced, but I find it weird that they have draught beer upstairs in Dance Cave but only bottles in Lee's Palace, Bathrooms are grimey, but that seems to be standard issue for most aged live music venues nowadays.
At the end of the day, I'd really only go here for when specific artists and bands are playing, but it's a solid venue for live music.