Like a bleached Mount Parnassus for the gods, pouring linen down steep slopes in foaming white rivers, streaming white curtains up into heaven, few stage sets I’ve seen for a dance piece have been as captivatingly gorgeous as Es Devlin and Bronia Housman’s mountainous creation for Russell Maliphant’s new work. The dancers too are draped in white like gods - or statues to be unwrapped from dust-sheets. The visual metaphors cunningly overlap, for this is a work in which Maliphant intends homage to the art of sculptors, notably the French neo-classical rebel, Auguste Rodin.

Sergei Polunin’s flight this week from the Royal Ballet just as he rises to the pinnacle made last night's Sadler's Wells show a very hot ticket for those who wanted to catch his guest appearance in it. But the evening was also a proclamation that this isn’t the first time that company has mislaid one of its finer talents.

Who would imagine that the search for new dance audiences would result in a cascade of fairy tales and dramas at Sadler's Wells, the focus for hip eyes on culture? But it is so - The Sleeping Beauty, Snow White and a Hans Christian Andersen folk tale all appear this year (following dear old Nutcracker over the Christmas period), though in radical new versions. Matthew Bourne has been commissioned to produce a new Sleeping Beauty for winter 2012, in the line of his previous classic rewrites Swan Lake, Cinderella and Nutcracker!.

The year’s best arts story was not the cuts (which isn’t art, it’s politics), but the appearance in Edinburgh of a mysterious series of 10 magical little paper sculptures, smuggled into the city’s libraries by a booklover. No name, no Simon Cowell contract - it proved the innocent gloriousness of the human impulse to make art, a joy that has no expectation of reward but without which no existence is possible.

Here’s a mindboggling statistic. By my calculation, some 330,000 seats are going to be offered for sale in London and Birmingham for just one ballet this Christmas - that’s live seats, not counting the three (yes, three) cinema screenings of foreign Nutcrackers being beamed into the UK on a lot of holiday dates. So the dance industry reckon to sell up to half a million Nutcracker seats mostly in London in a bit over a month?

It is unusual in art for collaborators to be of equal star-wattage. The pairing of Benjamin Britten and WH Auden was one such. Another, much longer-lasting, was Stravinsky and Balanchine, a partnership of equals that endured for nearly half a century. More recently, Antony Gormley has worked with both Akram Khan and Sidi Larbi Cherkaoui, to great effect. Can Turnage, McGregor and Wallinger replicate these? This has been the question.

When the subject of funding for the arts arises, the phrase “allowed to fail” is frequently heard: artists must be enabled to try new things, press against the outer edges of what they know. Enter Anne Teresa De Keersmaeker and Jérôme Bel, two of contemporary dance’s thinkers. They have tried, and failed, to choreograph the final section of Mahler’s Das Lied von der Erde, and in that attempt, they have produced an extraordinary evening: the anatomy of a failure.

Do you think you could identify the range of facial expressions worn by Eleanor Crook’s strangely animated wax figure models? A glimmer of a woozy, lopsided grin, perhaps? The suggestion of a drunken leer? Possibly not, for the repertoire of facial expressions she gives her subjects – which are, in fact, the products of painstaking observation – are not, she explains, found amongst the living, but are unique to the dead.

Rambert is making a thing of acquiring classic works from the 20th-century contemporary repertory – and a very good thing, too. First staged by them last year, RainForest, a minor Merce Cunningham piece from 1968, was recently performed by the Cunningham company itself, in London on its final tour. And yet, while that performance was straight from the horse’s mouth, I think Rambert (whisper it) in reality do it better.

What lies ahead for dance as arts spending cuts bite? Can it survive the withdrawal of public funds that support dancers' training, choreographers' creativity, employment costs and health care? Is protest necessary? A panel of the British dance world's leading figures was brought together by theartsdesk for a major debate last Friday in central London, as dance faced its own Question Time.