I heard this snippet of conversation at the fair this year, and it seems to me to be the perfect summary of the fair spirit.
(tall gangly dude walking in front of me) "... so I rush out onstage to shave him with the chainsaw running, my pink tutu wafting up around my waist, my privates in full view, and 3000 stoned hippies go 'Ooooh!' "
It turned out this guy was the Danish member of The Flaming Heterosexuals. I caught their show later during the fair and really enjoyed it! (Although there were no privates on display this time...)
Speaking of the OCF, here's an article on the fair for those that haven't been and want to get a sense of it.