If you're interested in doing private events, it's NECESSARY to play what they want to hear. They're hiring you to play things they'd like to hear. If they want only U2, then great. But if they want a variety, then you need to do a variety. That's the blessing/curse of private events: you usually make more money, but you're locked into their needs and schedule.
Unless you're in a scenario where you're playing a specific artist tribute, or you're playing for musicians, (virtually) no one will give a second thought to what your preset sounds like. So don't expect that killer preset(s) will carry the show - it won't work. Unless you're doing instrumentals, the vocals and overall stage presence are the main things that people respond to.
As you mention, find a niche that clicks with you and inspires you and hopefully your joy will come through in your performance. People connect with the way an artist/band makes them feel, even above what they're hearing. Give them fun and joy and you can't lose.