I think that the problem with just hard limiting the peaks is that reducing the relative RMS value of the applause is what really matters. You need an envelope adjustment to accomplish this.
Not really. The envelope tool in these programs is just volume automation. Assuming the applause is louder than the music, and that is what you're trying to correct, a well set compressor will get the job done.
At the end of the day, it really depends on your workflow. I don't normalize, I amplify on the output stage of my limiter, allowing the limiter to basically all the work. If I needed to do something destructive so that I could normalize the file at the end, it might be different. That being said, I'm pretty lazy, and automating all the applause sounds like a major PITA