Is this a good cage for a Panama?

I'd go with the larger playtop for an amazon. I really would. They are pretty content to just hang out on a playtop, and that's a nice cage.
 
I agree with birdman. In fact, I have had my eye on that very cage (the brown one) for some time for our BFA (and if we hadn't just got him a super nice cage only 3 or so years ago, I would be very very tempted). Most amazons aren't exactly "hyper-active" like other parrots, and would get a lot better use out of a nice play top than a couple more inches inside. Kiwi spends more time on top of his cage than in it, and while he's active, he's not "swinging off stuff, moving a million miles an hour at all times" active. In fact, I've never met a zon who doesn't enjoy just kind of sitting up high and relaxing for at least a few hours a day:D With zons, bigger isn't always better when the sacrifice is a nice, high-up spot to hang out.
 
I'm personally not a big fan of playtop cages. The dome gives more head room, and in my instances, it gives additional space for more perches, too. The other thing with playtops is that if you leave the tray on, it darkens the cage a good amount (depending on location).

I use playstands (Java trees) for playtime out of the cage. It doesn't have to be a Java tree, many folks make their own AWESOME playstands.

I have 3 A&E cages. My Amazons are in these:
9003628 AE Cage Dome Top 36 x 28 Powder Coated - DOME TOP CAGES

And even though this one may "seem" excessive, my DYH utilizes every square inch of his cage. :)
9004030 AE Cage Large Dome Top 40 x 30 Powder Coated - DOME TOP CAGES
 
I tend to go the other way. ChuChu has a small cage for eating and sleeping. His time is spent on a large tree gym where he is a very active Amazon. We have many playtimes on the couch and he often goes with me on the Scooter to eat out, visit friends and shop in Walmart so he has a travel bag and portable Tstand. The seven cockatiels have a huge cage and spend most of their time in the top third, but in a smaller cage they bickered even though their day is spent on a large table top gym and they never have a cross word. I prefer to clip wings so the birds can be out all day, but I would suppose that a flighted bird would probably spend more time in a cage and therefore it should be the bigger the better.
 

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