Let's all look on the bright side: encouraging ritualised sexuality in kids is probably still better than encouraging ritualised violence. At least they aren't going to directly abuse the children they'll inevitably have, after being pushed into wasting their lives and youths on the pageant track, never being given an educational background strong enough to become a professional anything-that-doesn't-involve-dancing-or-looking-pretty. Since they'll no longer look youthful or be able to keep fit enough to dance well by the time they hit 30-40-50, they'll then become housewives, raising kids.
Yessir, they'll indirectly abuse their children into running in dancing pageants all the time, who will be pushed into wasting their lives and youths on the pageant track, never being given an educational-...
Quite a few assumptions there, but I don't like the pageant culture that seems so popular over there in the magical states, so I'm just gonna say hurtful things :p
On the subject of the kids dancing provocatively in particular... eh, I'm divided. There are a fair few societally induced downsides (breaking these up a little into a couple of dot points because I'm overusing brackets here),
-The lowering age of sexualisation of kids tends to lead to lots of mistakes on their part (since sexual education kicks in only later, due to whiny parents who don't want their kids learning about the third most important human biological impulse and the core of continued human survival as a species before they've allready learned an extremely distorted peers)
-labelling girls as whores before they're remotely old enough to cope with it (not that they can usually cope with that kind of branding in adolescent years either)
-apparently making them bait for pedophiles (pedophiles are sexually obsessed with children regardless of how they look or act.) There might be an argument for Child sex offenders, who don't have a clinically defined psychological condition :p. However this is... complex. I'll have to get back to this one later, my girlfreind's the expert on this.
-Kids really only imitate what they see, without really understanding it. Sortof connected to sexual education.
...and probably some others. I dunno, haven't eaten, have run out of steam for dotpoints pretty quickly.
Speaking from personal experience on the decreasing age of sexualisation of kids - In primary school we had a group of girls do a dance pretty similar to this in grade...6? So about age 11 or 12, I can't remember. Barely the first year of puberty for even the most developed girl in that group, anyway, it was the old days of the 1990s, so they were all late bloomers by current standards. Apparently. No-one made any fuss I was aware of. The boys who weren't into girls all that much didn't care and the boys who were... also didn't really care that much. The girls thought it was pretty sweet. The teachers were presumably just happy anyone was participating at all in class (as it was a low social economic area with lots of ratty kids). Most of the girls in that group turned out fine, one's attending uni and I think is aiming for a doctorate or some such. The rest attained the best most people in that school managed and have not yet died trying to break any world records for most cigarettes smoked at once or beating their children for the longest uninterrupted period of time. Hooray them and their continued survival of chronic unemployment and destitution.
Edit: Augh. Just realised I didn't think to include that they're doing it for non-sexual reasons. Duh. Sortof invalidates everything I've said up to this point. The kids are dancing that dance because they think it's cool, not to pick up (same goes for the example I gave directly above). If you just look at it how it is, they're just kids showing off their (admittedly, pretty damn well honed) dancing skills to get crowd approval. No sexual connotations save for the ones you're attaching to them.