I'd use three.
Original for the individual clips. What I call a Cutting Board sequence that I use to make the multicamera cuts. And from there I Cut/Paste the cut segments into a Final sequence. This makes it a bit easier to work as any segments already finished are removed from the cutting board.
I'd use three, as Jim suggested, but with a slightly different approach. Instead of copy/pasting edited segments from the multicam edit sequence, I nest the multicam edit into a new, final sequence. That way, if I need to make changes, I just jump to the edit sequence and they ripple down to the final sequence. You could also drop sequence markers in the edit sequence demarcating the break between "scenes". These will appear as clip markers in the nested sequence, making it easy to snip it into pieces if you want to rearrange it, add titles or transitions, or just purge the dead space.
ADDENDUM: Here's a post I wrote about dealing with an issue with multicam sequences. It offers a little workflow advice, though, which is probably more pertinent to this discussion.
That way, if I need to make changes, I just jump to the edit sequence and they ripple down to the final sequence.
I used to work that way, myself. But I found the delay as Premiere works to 'catch up' in the nested sequence too frustrating to live with.
By that point, I'm not doing too much heavy-duty editing. It's usually my last step before final assembly. All color-correction and the like is done in the original edited sequence. It does bog the system down a bit, but once I went to Vista 64 and more RAM, it was much less of an issue. Diff'rent strokes for diff'rent folks...
I look ahead to the DVD construction and create a multicam sequence pair for each dance. Use a playlist to create the larger play elements on your DVD. You can use chapter playlists to create individual dance options, but I find separate movies for each dance easier. Just as with any approach to offering "scene" selections on DVD, you need to think about where there will be a "jump" (DVD spec issues/search on disk) between scenes.
I am still SD and use scenalyzer for capture. I add a marker on the clip for the beginning and end of each sement, and for everything tha has been continuous, I'll sync it in one sequence, and add markers to make it easy to pull the part for each scene into its own multicam source sequence.