I mentioned those two bands because I think they could probably pull it off as well. They both play great cover songs really well.
Los Lobos, Wilco and even Ryan Adams could try this live set of covers direct to acetate thing and probably do a good job of it I suspect too.
I see it as a challenge to other good bands, to see just how good you are.
I have a Dillards recording done this way, only crowded around one mic. Great stuff.