Should Classroom Observations Be Like A Play Review

A Typical Observation Form Used in Teacher Evaluations

I don't see "Does the teacher know what he/she is talking about?"
This is one of the most important things about the lesson! Having everyone "engaged" in the "show" and not providing accurate information is meaningless!
As a matter of fact, it is worst than meaningless because it causes a student to believe the information is correct when it is actually wrong. The point of education in the first place is to convey accurate information to the next generation! 
This is what is wrong with allowing supervisors with little or no knowledge of the subject matter to observe and evaluate teachers.