Here's the other threadJigs *are* traditionally (and still) used in New England-style contra dancing.
There's variation (somewhat regional) in the appearance of jigs at contra dances now that it's an early 21st century, pan-North American thing, due to the adaptation of old-time Appalachian style tunes to the dance form and the invasion of the southern square dance scene by contra dancing. (Old-time Appalachian tunes don't naturally necessarily fit well with contra dancing, but as the dances and the playing have evolved in the past 30 years, they've come together.) A contra dance band that specializes in Appalachian style tunes may not play jigs because the fiddler doesn't do them (is this a circular discussion, or what??).
So, Claymore, Russ & Kim, I'd say that your contra dancing experience doesn't entirely reflect the New England contra dance tradition and its relationship to jigs.
Also, what Ken Perlman does with a five-string banjo doesn't necessarily have much to do with five-string banjo traditions, either. He's been a master of adapting and developing playing techniques that fit more northern-style tunes, such as jigs. Greg, Here's an essay (from an Englishman) comparing the American and English dance styles/scenes.
On the bounce factor: over the past 30 years of the contra dance revival, the styles of dance choreography and music have changed from a more up and down or back and forth type of movement and rhythm, to a smoother drive and more circular, flowing movement. (Skipping may always have been frowned upon, though!) Contra dances and their music 30 years ago (or even 15 to 20 years ago) were very clearly phrased. A contra dancer could complain about old-time tunes by saying, "We want dance music, not trance music". That would be a rare complaint today. You hear more old-time tunes (though the repertoire leans toward the slightly more clearly-phrased ones), and when jigs are played by a contemporary-sounding contra dance band (Wild Asparagus, Hillbilles from Mars, Old Sod Band), they are most often played very smoothly and lyrically.
In Tucson, Arizona, we have three local contra dance bands, with three different fiddlers: one southern old-time style (no jigs), one more Irish-style (though with somewhat smoothed out jigs), one more New England-trad/eclectic style (the banjo player switches to his accordion for the jigs!).
Sorry for contributing to the thread drift, but the questions were raised!
~ Becky in Tucson