When it was recorded, nobody knew that MTV Unplugged would be 10,000 Maniacs' last album with Natalie Merchant. As it stands, it's a quiet, gentle way for her to bow out, offering no new revelations but several solid versions of the group's signature songs (mainly concentrating on Our Time in Eden) and a cover of Patti Smith's "Because the Night." It's nothing new, but for fans it's a graceful way to say goodbye. ~ Stephen Thomas Erlewine, All Music Guide
Springsteen wasn't happy with it and he and Smith co-rewrote it. I think it's telling that when he plays it live, he does it in the co-written style. It's at least as much her song as it is his, especially since she's the one who had the hit with it.