When used with ordinary people, this would present a far more limited range of dance than is accomplished by a skilled dancer. But as you've seen people have fun just doing the 4 steps and minor combinations of DDR. Skilled dancers can read dance notations and reproduce a complex dance (in their own style) and of course they can watch their leader/choreographer do a set of moves and reproduce a complex dance. Square dancers reproduce moves called out as words by the caller. We clearly have the ability to engage in dance based on both visual and auditory commands.

The trick here is to make the command structure invisible and silent, with the eyes left free to enjoy the environment. The human brain is actually very flexible. There are blind people who have mapped cameras to a 2000 pixel "display" mapped onto stomach nerves and been able to get a sense of vision, we can actually receive quite complex stimuli via touch if we train for it.

However, for most people, I imagine a limited number of moves, probably more for the arms than the legs. As noted, the cuffs, unlike speech or vision, can actually tell with accelerometers if you did the right move, and how accurately, which has interesting potential.

I am not a dance or martial arts expert, no, though I have danced on stage (badly) and even choreographed a bit of comedy dance, and while taken merely a semester of a martial art, I know how many moves there are and how complex some forms are. Nonetheless, we do communicate how to do this to people with speech and vision, and my thought is to consider other ways to communicate it. Real ability at this would only come through practice, thus the idea of a DDR style video game. I suspect with cheap accelerometer input devices on video games (such as the Wiimote) we'll soon see more complex dance games on the market in any event.