I like the idea of a viewing area, like a dining terrace, near the first tee. The only example I have played like this is at Bethpage Black, where it is sort of like a mini amphitheater (with the path behind). It always seems like a popular place for people to hang out.
Having the tension of teeing off in front folks adds to the intensity, and when one succeeds it is certainly a memorable experience.
From Wayne's description Merion's 1st sounds more intense than BPB. However, I doubt that there is as big a risk of getting heckled if you make a bad swing @ Merion.