This thread was beginning to make me uncomfortable, due to the amount of mis-information flying around, as well as comments that could be interpreted as religious evangelization.
Organized religion goes back for many thousands of years (Christianity for 2000), and has involved zillions of world views, social mores, etc. in different places over that timespan. There are very few blanket statements you can make about Christianity, other than (maybe) that it has something to do with Jesus Christ.
It would be helpful, therefore, to be specific in time and place when referring to what various Christian groups do and do not believe. You have to be VERY specific. For example, Baptists are a varied lot. Tony Campolo is a well-known (in some circles) Baptist speaker. When someone asked him "can Christians dance", his answer was "some can, some can't"
In general, I think it's best that we limit discussion to what we're personally familiar with, lest a flame war break out.
As for my experience: my Baptist church has nothing against dancing. My ballet company negotiated a 41-year lease with another Baptist church, and converted the sanctuary into the city's biggest dance studio.
My ballet company recently put on a dance with significant religious content. It would not have qualified as "liturgical dance" --- it was not made for worship or to be part of a church service, but rather as a theatrical event. So it is 100% "theater dance", and I don't think anyone questioned that. Also, the costumes were very skimpy, as part of an intentional effort to break the stereotype of Christianity being associated with bodily repression.