This place puts on great concerts. They have a great sound system and an excellent floor layout. With the pit area actually being a step down from the surrounding floor space, there's an easily visible delineation between people who want to get ruckused and people who don't. As someone who consistently flips flips back and forth, being able to satisfy my mood without any violent surprise is always appreciated.
The other great thing about this venue is its size. It's not small like the Horse Shoe or Dee's, but it's not gigantic and ugly like the Kool Haus. It's in this nice middle ground that not many places in Toronto can claim (others include The Opera House and The Phoenix.) If venue plays a factor in your concert going decisions, Lee's Palace is a big plus.