Again, Fox has already released quite a bit of stuff (though I haven't listened to any of it) as "Chuck Bobuck" so Flynn will probably similarly release stuff under another moniker (hopefully he comes up with something better than "Randy") rather than as The Residents.
"The band *did* change significantly after the Mole Show so presumably Clem and Kennedy had a big part in those early records."
Possibly but I think it had as much to do with the technical advancements of the time and a self-conscious decision of Fox and Flynn's part to make music that was slightly less primitive/more sophisticated after "The Mole Show" got them all so deep in the hole (sorry couldn't resist).
I saw them once too, probably about 10 years ago. Might have been the same tour. Dreams were the main theme (Randy kept singing the refrain from The Everly Bros' "All I Have To Do Is Dream"), there were spooky stories about dreams that linked the songs. Also remember that they reworked some early classics from "Duck Stab". Felt similar to you- not an amazing show musically (had a good guitarist though) but a unique one and I'm glad I saw them.