i think it could totally work. well, for the wedding only that is.. not for the reception, unless the venue has other facilities that could accomodate.
i stumbled across koerner hall (toronto). look how gorgeous this is! the architecture of the ceiling is beautiful. WOW! really the only decor you'd have to take care of is the mandap. obviously you'd want to enhance the look by having a mandap that accentuates the amazing curves in the ceiling.
there's no worries about the seating since there's plenty on the main floor. it seats 540, which can easily be filled during an indian wedding. even though the balconies is unnecessary for guests, they would be great for the photographer and videographer. you don't typically get opportunities for angles like that in photos and videos.
considering it's a music hall with awesome acoustics, you could imagine what a live indian classical ensemble would sound like during the wedding. i'm sure it would create a very calming experience throughout the entire hall while the wedding is taking place.
i really love these kinds of venues. it's definitely an easy way to make your wedding unique.