Maybe the people who you have in mind aren't the target demographic. There are plenty of people who prefer not to drink (or want to drink less) that basically never talk about it.
People don't dance when they're sober, period. Even in cultures where alcohol isn't traditonally consumed, either another substance is used or very energic and rhythmic music is performed in order to induce trance-like states. People don't magically start moving when there isn't anything to entice them (drinks, or money for professional dancers).
You obviously haven't been out with very extroverted people before. People can be very suggestible, I think it's probably possible to create a space where people dance without alcohol or anything else.
Yeah, they're called nightclubs with outrageous prices for drinks, or juice bars. Been to a few myself. But somehow I doubt your idea of "a space where people dance without alcohol" involves loud rave-type music. Maybe you could clarify