This will be rushed - excuse typos - but Slinky alerted me to this thread and I can't not answer.
I am a belly-dancer, have danced for eight years now. My understanding of the situation is that belly-dancing is a bit bipolar.
There are professional dancers who are out to titillate their audiences, but I don't think these dancers are hugely well thought of perhaps. There should be audience interaction, no matter what your audience is, that's part of your performance. there's a really cool blog here by a Scottish woman living and working as a professional dancer in Cairo. I've done workshops with her - she is a fabulous dancer, but very self-contained and dignified. If her audience treats her with disrespect, she leaves the stage until they "behave".
I have also done workshops with another lady (of Persian descent) who has danced since the age of three, taught by her grandmother. She would never dance in front of a man, not even her husband - her attitude was "why would i want to?" Dancing was very much a "by women for women" thing. I'd love to have the kind of society where after coffee instead of all sitting round biching and sniping, we all danced together!
However on a personal level, I dance with a group of other women, and perform at haflas (belly dance parties) which are almost always entirely women only events. (Although, as a group my class also performs at fetes or other charity-type things). I have never found such a supportive atmosphere anywhere outside the belly dancing community. I've never heard a word of criticism about someone's shape, age, weight or beauty (although we do praise costumes, and most importantly, dancing technique!) I've seen fat, thin, pregnant and scarred women dancing - all of them dancing beautifully. It really is an actual "sisterhood".
Part of the fun is dressing up in beautiful, sparkly, jingly costumes - who doesn't want to look exotic and beautiful from time to time? But I think a part of the attraction for many women (definitely for me) is that it's a part of our lives where no-one judges us. We dance to the best of our ability, we buy and make beautiful costimes with may show off lots of skin or almost none at all. We are not invisible.
We are dancers.