From my understanding, the Hadith that you mentioned is in reference to a celebration, not worship. Although, the below story is not the same…it shows how the Prophet (saw.) seperated the Ethiopian’s Dance from a religious act.

The story of the “sons of Arfida”—a familiar Arabian linguistic reference to Ethiopians—provides a telling illustration of the place of culture (here, of course, Black African culture) within the Prophetic dispensation. In celebration of an annual Islamic religious festival, a group of Black African converts began to beat leather drums and dance with spears in the Prophet’s mosque. ‘Umar ibn al-Khattab—one of the chief Companions—felt compelled to interfere and stop them, but the Prophet intervened on their behalf, directing ‘Umar to leave them alone and noting to him that they were “the sons of Arfida,” that is, not his people. The Prophet invited his wife ‘A’isha to watch the dance, took her into the crowd, and lifted her over his back, so that she could watch them clearly as she eagerly leaned forward, her cheek pressing against his. The Prophet made it a point to dispel the Ethiopians’ misgivings about ‘Umar’s intrusion and encouraged them to dance well and, in one account of this authentic story, reassured them to keep up their drumming and dancing, saying: “Play your games, sons of Arfida, so the Jews and Christians know there is latitude in our religion.”

from “Islam and the Cultural Imperative” by Dr. Umar Faruq Abd-Allah

Not true, in Imam Nawawi’s Riyadh-as-Saliheen it is mentioned in chapter 7, section 18, point 947: “Imam Shafi’i (RA) said that it is better to recite Qur’an near the grave. It would still be better if all join in completing the recitation of the Holy Qur’an”. NB-This point has been omitted from the Darusalaam (A Salafi publisher’s) version.

Also at the beginning he mentions that evidence must be brought to justify acts of worship and gives dancing as an example:

Imam Ahmad relates from Anas (Allah be well pleased with him), with a chain of transmission all of whose narrators are those of Bukhari except Hammad ibn Salama, who is one of the narrators of Muslim, that the Ethiopians danced in front of the Messenger of Allah (Allah bless him and give him peace); dancing and saying, “Muhammad is a righteous servant.” (Musnad al-Imam Ahmad. 6 vols. Cairo 1313/1895. Reprint. Beirut: Dar Sadir, n.d.., 3.152). (Although I should say that I do not condone dancing as a legitimate act of worship, I am just giving an example of the evidence of people who do such a thing use)

I have not watched all of it, so I don’t know what else he has stated that can be disagreed with.