Organised dancing is no more "critical" than cursive. Every generation thinks their version of entertainment and social bonding was better and what the kids are doing is inferior and dumb.

And the reason young people are doing less in-person socialisation is less because home entertainment has gotten better and more because in-person socialisation has gotten worse, especially in America where people have nowhere they could socialise in walking distance, can't afford a car (and would get arrested for drunk driving if they could), can't afford to get molested in a techbro fake taxi, and if they tried to cycle they'll get run down by a boomer in a giant truck who was playing candy crush.