When I saw the performance on TV, I had mixed feelings. It just seemed like ABOY would have fit the energy of the show better, and would have promoted the song, since it is their current US single and all. However, I totally understood that Edge probably wouldn't have been to into playing an upbeat song. Also, I thought Bono did a fantastic job with the ending -- best thus far.
After having listened to it a bunch of times since the Grammy's ended, I've grown to like the performance a lot more. I think that Edge was a little more subdued than normal, but that's understandable. Bono, on the other hand, gave the best vocal performance yet of SYCMIOYO. Aside from a few rough areas (far fewer than normal), this was the strongest and clearest I've heard him sing it. I think Bono's performance really made up for any other shortcomings (synth problems, etc).
I think the reason you didn't see a standing ovation is that people were a little surprised to hear such a different song played, especially since they were expecting Vertigo. It really was a good performance, and I wouldn't be concerned at all about the reaction of the crowd or general public.
Seriously though, the acceptance speech was the moment of the night for me. First off, I was shocked that they won that award (as were they). I was really glad they did though, as it allowed them to say what they did. Edge's dedication was very emotional, Bono's praise for the other bands was very gracious, and Larry speaking directly to us on such a gigantic public platform truly made me realize why I respect U2 so much.
It was a good night to be a U2 fan