I realize this is an older thread, but I was browsing through the forums and it caught my interest. I read through some of the replies, but the trivial debates over semantics were dizzying. I figured I'd offer my two cents here to see if anyone cared.
As previously stated, traditional mentalism probably isn't best suited for the spontaneous distractions of a street setting. When I was younger, I attempted doing mentalism in such environments for fun, but I was never able to capture people's attention as well as I could with close-up magic. I believe the difference between the two is where the focus lies in performance. Magic is primarily focused on the magician. It's easier to just sit back and watch someone else perform sleight-of-hand. In mentalism though-- the focus is primarily on the actual spectator. As the performer, you're not manipulating a deck of cards or sponge balls-- you're actually playing with the spectator's own thoughts and secrets. It requires them to be more involved as an active participant in what you're doing. So on the street, guerilla-style... most people aren't willing to even give you the time of day for mentalism because you're essentially askin them to put their lives on pause.
That isn't to say mentalism won't work in other similar settings. I find that in pubs or lounges, mentalism works very well. In these settings, you get the same spontaneous guerilla vibe you typically look for on the street, but it's more relaxed and casual. People go to bars and clubs to meet people. I find that women are especially more responsive in this type of environment. And since mentalism revolves around the type of rapport you can build with people, I find these types of settings are ideal. There's so much you can play with too-- reading a person's mind by buying them their favorite drink which they never said out loud. Predicting a person's phone number. Accurately guessing everyone's names and birthdays. These types of effects are easily accomplished in mentalism and fit the social atmosphere of a pub or lounge very well.
In closing, I do believe mentalism has its own place in appropriate performance venues. I think it's important as performers that we recognize the differences in magic and mentalism to see what makes each avenue work effectively.
RS.