Western European Catholic opinion has, in the past, condemned dance as immoral, because of its carnal overtones. Indeed, at one time, I believe all dance was considered morally suspect, though I don't think anyone told the Irish! However, this is no longer the case. Consider, for example, this video of Bl. John Paul II obviously enjoying watching break dancing, outside of liturgy.
Indeed, there are many types of dancing, where there are no carnal overtones, e.g tap, riverdance, some ballet (Nutcracker), dances at school Nativity plays, etc.etc.
Cardinal Arinze's views on the matter are expressed in the following video and are quite ambiguous. He says that dance should not enter the Liturgy in Europe and North America because it is "akin to Saturday night" with a man dancing with a woman. As I've mentioned earlier, this misinterprets and cheapens much European and American dance. However, he leaves the question to the discretion of local bishops in African and Asian churches.
We now have African Catholic priests working as missionaries in England, with a brief to teach us what works in their local churches. We have congregations consisting mainly of African or Asian congregations. Presumably the cardinal's comments suggest that there is a place for dance within such congregations?
A final thought:
Dancing is the loftiest, the most moving, the most beautiful of the arts, because it is not mere translation or abstraction from life; it is life itself. ~Havelock Ellis
If this were an exam question the words "Please discuss" would come here!