Agreed. The acoustic live version is just beautiful. I saw them live somewhere around that time at Greatwoods in MA, Hell Freezes Over tour and that is how they played it.
I'm pretty sure I saw this at the Shoreline amphitheater in Mountain View, CA when I was living out there. Same tour but out on the w. coast, Mikey!
Yes, this performance is great. Live, the Eagles were stupendous. Tremendous talent. I can barely listen to the recorded versions anymore though as the song is so played out.
Still, my favorite performance of Hotel California was from the movie "The Big Lebowski." I'm not going to say any more because, well, if you haven't seen it you should and that is all.