I find it hard to believe that NYC would allow the theater to reopen after its renovation with a staircase that didn't meet code. Especially in a building built for public congregation, where the stairs would be used to escape quickly from fire or some other event.
Also, I don't understand your implication that a smaller theater would be held to a higher standard than one that seats 1,400. That makes no sense to me.
I'm seeing the show the weekend after next, and I guess I'll see for myself, unless the Lyric has been closed down by then!