I suppose I should have asked, can a bishop licitly permit liturgical dance? We’ve had responses from two different priests so far who don’t seem to agree completely, so I’m still not sure.
No.
The word “licit” means “according to the law.” That means that the question itself is not about opinion or feelings or emotions or preferences, much less wishful thinking. It is a question about what the law says.
Now the law (in several forms, canon law, liturgical law, Vatican II Constitution, etc) is clear that changes to the Mass cannot be made by the local bishop unless approval is granted by the Holy See. When anyone claims that the bishop has been given that authority, the responsibility is to show where/how the law gives that to him. No such law exists.
Nothing in the law gives the local bishop any authority (ie any “competence”) to permit liturgical dance. One might say that is is beyond his competence, or one might say that it is not within his competence. It’s the same either way.
Now, if the bishop requests and receives a dispensation from the Holy See to permit dance, then he has that authority—still, without any such dispensation it is not his decision to make.
Usually when a person asks “is such-and-such licit?” the sentence clause “without a dispensation” is implied.
We know that the Holy See has been reluctant in the extreme to grant permission for liturgical dance (at least in Western society). It’s also worth noting that when the bishop of Hawaii explained the dispensation that he received he actually avoided using the word “dancing” but instead specifically used the phrase “sacred gesture.” The only time he used the word was to remind the diocese that the prohibition against “dance” remains in effect.
Now I would ask readers here to actually read that letter by the bishop. It’s extremely obvious that if permitting dancing in the Liturgy were within the competence of the local bishop, then years of effort were all just a waste of time. It also begs the questions “why would the Holy See grant a dispensation if none was needed?” and “why would the Holy See intervene to prohibit a bishop from allowing something which the law permits him to allow?” The whole thing would make no sense if this matter were within the competence of the local bishop (which, of course, it is not).