I thought Google stopped dancing but if you follow multiple threads in forums for webmasters, everyone is bitching about Google SERPS. A dozen or so high-quality websites that I manage are seeing massive flux in traffic. In other words, for those of us who have been around to remember the Google dances, I see all the attributes of a Google Dance - results varying from one moment (data center) to another, massive traffic fluctuations, and sometimes results that simply make no sense. I remember that something similar happened during Jagger update too.

With the massive changes in search results, it appears that there is general agreement that this is indeed an update (or dance or "glitch" or whatever name you fancy) - to me it seems that there is a minor algo tweak with more importance to page title rather than anchor text. 

But my research shows that as of now we are nowhere close to being done. The results are still all over the place, some blogs/websites cannot be found, and traffic is up/down for almost everybody. 

Anyone who is seeing any turbulence in their traffic and rankings, please just stay tight.  This is the worst time to make any changes.  Google has done this before many times.  Once it is all over, yeah, you might see some (or even none) changes, but if you were ranking well before and there has not been a major change in what your competitors are doing, you will come out to be OK.  Even an algorithm tweak (there is no such thing as algorithm change) does not affect good websites in any way.  I have one website that has been going up since last 7 years consistenly and we do not optimization at all - just put good content and link to related articles.  In fact my colleague who runs it almost independently is one of the most non-technical person in the office.  And since ain't broken, webmasters like me have chosen to stay away from tinkering with it.