So where's the target now? That they should be able to improvize? I'm sure that can be added too with some work. Kurzweil famously wrote a program to produce music based on the music of classical composers as a child, I'm sure it could be done for dancing as well, especially since computer vision is making leaps, which would aid analysis. But then again, that would also just be "mechanical", as we would be able to explain the model.

They can't improvise. Improvisation is an innate quality which they lack. Likewise for the music creating program. There were such programs 30 years ago so Kurzweil's is nothing new. The music program can't judge the quality of the resulting piece.