When is "Maybe This Time" not functioning as an internal monologue? I think "lady peaceful" has always fit if you can imagine a chaotic personality on the surface sometimes longs for a more peaceful experience of life, or more stability... which I absolutely do. Even when the song is being done as a Cabaret number, it is Sally performing a song... so it doesn't have to fully word for word represent her, but then serves the dual function of doing that... which it does.
Also, I'm sorry but Ms. Milgrom-Dodge is a lucky and hard working and not especially talented director (or choreographer).
But I do agree that 100% "Why Should I Wake Up" should be in all versions of the show, including Mendes', it's a key song in the show and kind of sums up how/why the show works. It's beyond stupid, in my opinion, to cut it... and having Cliff being bi-sexual does not negate the song at all, as I assume was part of the justification for cutting it in the Mendes production. It's Cabaret at its writing best... functioning as a gorgeous old-school musical theater ballad while also, without sounding like it knows it, commenting directly on/reflecting the dangerous but seemingly innocent and romantic sentiment at the time and place right as Nazis were taking hold of Germany and Europe.