I think one of the important points in a discussion like this is to examine the different types of worship among Christians. Trying to superficially compare the Holy Sacrifice of the Mass with a typical pentecostal or fundamentalist worship service, for example, is trying to compare apples with oranges. The purposes and goals are quite different.
From a Catholic perspective, our Lord offers Himself in our time and space in an unbloody manner, in His one time and eternal Sacrifice of Calvary, on our behalf. The fruits of that Sacrifice are made present to us. To participate in the Mass, is to be present spiritually at these events. It is hard to see how dancing can enhance our participation, rather, it would help detract from the reality that we believe is occuring.
Most Protestants in America reject the whole idea of the Mass, and therefore talk about Church services. For some, reading and preaching from the Bible and singing songs to the Lord form the basis of their "central" worship. It is easy to see how dancing could be incorporated in this type of service without much of a problem.
While the Mass is the heart and core of Liturgy in the Church, the liturgical worship extends to additional forms. Perhaps, in dignified forms, the question of liturgical dance could occur outside of the Mass proper. Additionally, there are extra-liturgical worship forms used by some Catholics, some of which parallel what other Churches and ecclesial communions do for worship. Charismatic Catholics come to mind, as does some of the services done by the Neo-Catechumenate Way. "Dancing" is not necessarily out of the question in these forms.