Our Catholic rector would never allow such nonsense, he's a straight-up old-fashioned Irish dreadnought of a priest.
But we once had a liturgical dancer in our Episcopal parish. I made fun of the rector so effectively that he never invited another one.
It's my experience, at least hereabouts, that the ladies who dance in church are the ones who couldn't get a gig anywhere else. I got enough gigs outside of church to keep me busy -- and now that I've lost almost 30 pounds I may go back to dancing again.
Nothing inherently wrong with dancing, folk music, Jesus music, kids liturgies, group blessings (minus the nazi salute please). Just not in the Holy Mass. And preferably not in the nave at any time, though that might be too much to ask.