Because every time you use a step, you suffer 2 seconds of JA delay. Spamming steps every 5 seconds for 50 seconds would get you a nominal 40% DPS penalty and an average of 14% defense down (less than Dia III). That 14% defense down would have to increase the dancer's DPS by more than 2/3 in order to exceed the original DPS, and it won't, so Kincard's statement is correct.
Daze duration maxes out at 2 minutes and you get at most 40 seconds duration per step (with 10/10 JPs), so you have to do one step every 40 seconds (after the next 2 minutes after capping out) to maintain this defense reduction. So lets look at some ideal cases:
1) If you extend the simulation out to 3 minutes (just one more step), you have suffered a JA-related DPS penalty of 12.2% in exchange for an average defense down of 20.5%. At that point, it's not a bad trade-off. It's probably even likely that you would benefit from this solo.
2) If you mix in Presto, you hit the cap in 30 seconds, experience an average of 21.5% defense down over 3 minutes, and suffer a 10.3% DPS penalty due to JA delay.
3) If you assume every step is also perfectly timed with a weapon skill (and use Presto), you get an average of 21.5% defense down over 3 minutes and suffer a 7.2% DPS penalty due to JA delay. It is worth noting that this case is unreasonable because 5 second WS cycle times are impossible for DNC at the moment.
So that sounds pretty good, yeah? Problem is that the vast majority of fights in all current content clock in at or below 30 seconds. So it's essentially not worth doing any more than Presto -> Box Step on the vast majority of mobs. Even in the most ideal case (#3), you average 17.8% Defense Down and 33.4% JA delay in the first 30 seconds. Unless that 17.8% Defense Down causes +50% DPS, you will personally lose DPS by doing those steps. Your party may gain a little DPS depending how large it is, what your other buffs/debuffs are, and what you're fighting, but it would hardly be worth the massive annoyance of doing all those steps.
Everything above ignores Step TP costs and the fact that players aren't really perfect, so reality is much less favorable than the pictures painted above.
Also, to clarify, I'm not asking for Dancer to parse as high as SAM. I'd just like less annoying mechanisms for the job, like reducing the Daze limit back to 5 and increasing the potency of the individual Steps to cap at their current caps. This would have a totally nominal impact on party performance and a massive impact on job enjoyment.

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