So, instead of commenting on one of a few that mention this change, I thought I'd start a new thread, since this also covers more than that.
As you can tell from my name, I love writing, and have done a few fun fan fiction stories. I noticed the difference between the original dancing imitation of the Boylan Sisters and the 2012 "Smile," which thankfully someone put up even if it sounds like they shouldn't have. :-) I don't recall totally with the one I saw in 2010 but it was a bit of each, I think, when it was at my local theater.
As a small time writer, I have a concept in my mind of "what happened in their universe" as I watch something in any media. It's why it's so easy, as my profile notes, to imagine that in their universe, the comic strips don't yet exist... but Pepper writes them, first making stories making fun of Annie for sneaking out often, then realizing she has talent and using it as a way to cope, but still having Annie as the hero. It makes sense, especially, since originally Miss Hannigan's line was, "Next thing you know she'll be in the funny papers." (As for the lack of eyeballs... you'll have to read but let's just say Pepepr always teases somene becasue they draw people well but they always get to nervous about getting them the right size so they just decide never to put them in. :-) Pepper does the scenery and stories, and they all contribute some.)
This brings me to Smile. I guess you could say that the full dance part is the show part, the "get in Miss Hannigan's stuff" part is how they normally play. Because, it does look like what girls would do. Now, they seem to have that down pat enough that they probably do a little of each depending on the week. (Yes, it's past their bedtime, but they can still catch it if Miss Hannigan's on a date or just too drunk to care some Thursday night.) Whether the girls spend their time often imitating dance steps is up to you; the beauty of "Annie" is we do have enough left to us to imagine.
Of course, I enjoy watching at the time and generally don't have to ask myself till later how somethign happened in their world. Even if I do have reason to say "Okay, that's not exactly likely" I can usually explain it in my mind in a split second. For instance, I mention in my profile watching a performance with a man who had FDR down to a T. We all know that, historically, his New Deal came out right away. However, it's *very* easy for me to believe that he and his cabinet could have had a moment, when things didn't improve right away, when they thought it was hopeless in December of 1933, till our little heroine stepped in and sang "Tomorrow." I mean, granted Lincoln was more melancholy to begin with, but I've heard Lincoln was borderline *suicidal* at one point in 1862 during the Civil War. Maybe that was an exaggeration, but even so, I can definitely see FDR having a moment of despair and needing Annie to perk him up.
All that is to say that I think either works as something the girls could do during "Smile," and the great thing about a musical like "Annie" is there are a variety of ways you can go. We each have our own personal ideas of how events in their world occur. Mine, with Pepper writing the comics and the '82 movie (explaining the different timeline) and the 1999 movie being a more likely expansion (though even where I definitively give that as the timeline I do include things from '82, incorporating the orphans running to Warbucks and Molly being scared for Annie as Molly's nightmare and the 1982 Grace (becasue Warbucks wouldn't likely marry a black Grace in 1933). (Plus, Disney just had Miss Hannigan starving the kids so as to not show her drinking; I figure one of the older girls cooked when she didn't - or if she just felt like ordering them to.)
Sorry, I've rambled long enough, but I thought this might be a good introduction thread to some discussion on just the general idea of how we watch. Because I'm sure everyone has a slightly different way to watch things.