Cap'n,

I think you hit the nail on the head in your original post. Technical Virtuosity of itself is not enough. There has to be musicality - the ability to interpret the tune or song and to convey your understanding of its meaning to your "audience", whether you are playing for dancing or for listening.

I believe improving technique is valuable - in fact one should always seek to improve, but it is always important to keep in mind the importance of providing a musical interpretation of your song or tune.