I use that quote at live shows more often than I probably should, and it usually isn't preceding a cover of this song.
In recent years it seems that Nirvana's performance on MTV Unplugged has been framed as a gigantic cultural moment, and rightfully so. It was an unexpected, unprecedented move on the band's part.
The album left an impression on me to be sure. There is something about the raw, stripped down versions of those songs that compliment the compositions beautifully.
I briefly met Krist Novoselic in Portland, Oregon at a Cracker/Camper Van Beethoven show at the Aladdin Theater. I didn't want to bother him, but I gathered the courage to hand him a Buffalo Jones CD, saying "Hi... I'm the bass player... Thank you!" To which his response was "You're welcome." I left it at that, and felt oddly satisfied by the experience.
The next year, Buffalo Jones had the distinct honor of opening for Krist's new, fantastic band Giants in the Trees. Before the show I asked if he would be terribly offended if we did a Nirvana cover during our set. His response; "Somebody's gotta do it." He even filmed us from the side of the stage and posted a video clip on Twitter. He congratulated us on a job well done, and I am now probably convinced for life that Krist Novoselic is a hell of a guy.
I hope I did this some semblance of justice. For fun - Take note of the snare drum in the lower right video, and watch as it threatens to fall over throughout the performance.