My family is from the Midwest, where dollar dances are popular. My family sees it as a way to visit (semi-privately) and have fun, as well as help the couple out starting off the marriage with a little extra money. Typical for my family maybe raises between $150-500 a wedding.
My fiancé's family is from the east coast, where dollar dances are seen as distasteful and greedy.
I've been to weddings with and without dollar dances, and as long as they didn't last too long, I've never felt like they were distasteful or rude. On other boards, I know that etiquette states not to do them...but my parents and other family really want one, as that is something they like to do.
If I have one, I'm afraid of looking greedy and rude to my fiancé's family, but if I don't have one, my family will be upset that I wouldn't want to dance with EVERYONE and would see it as being antisocial/rude.