After the Communist Revolution, kung fu instructors took jobs as dance instructors. A lot of the modern wushu - very gymnastic and often aerial movements - came out of the altered teaching. Much of what you see in modern movies is non-traditional.

There's been a range of opinion in the Chinese martial arts community about modern wushu. My own opinion is that the new teachings, while not being practical, keep to the spirit of the origins of kung fu in chi kung - promotion of health and better control of your body.

So, the short answer is that it did become dance-like.