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It's really interesting how your perception can change...
When I was in high school the grinding dancing was all the rage too, and I partook a little but that really wasn't my type of thing. A few years ago I chaperoned a homecoming at my old high school and it was rather disgusting seeing a bunch of 14-17 year olds basically having sex on the dance floor. I can see where your school is coming from canceling prom due to "dirty dancing" It is a very unsettling thing to watch and supervise over when you are older yourself.
If they actually cancel it for good (isn't prom season like still 3 months away? I'mm sure you have time to prove you can dance nicely), do what someone else suggested - go rent a house with some frineds and do your own thing. If you wanted to go to prom so you could get fucked up and and grind someone, then do it in a place where you won't have your school regulating you.