That's probably a pretty broad question considering how varied dance music is these days but Sonar does seem to have all the necessary tools.
Full disclosure... I'm not a dance guy but have put together some stuff just to try it out and actually might do some "industrial" type stuff (I love old Skinny Puppy, Ministry, Foetus, etc) which is pretty similar.
First off I'm pretty sure there are third party plugs/instruments that probably would make things a lot easier for the genre. Can't help you there so I'll just throw out some things inside SOnar to check out.
1) Track View: A lot of this stuff can be done right inside Track View with audio and MIDI Groove Clips. You can just drag them into the TV, drag them around, drag them out to extend them, etc. They obey tempo and pitch changes (if they've been programmed to do so). With audio grooves you just drag 'em in and go. With MIDI grooves obviously you have to send them to a synth. Honestly I personally find this is the simplest way to do it but that's because I already know a buttload about the TV. Sonar ships with a ton of samples and MIDI loops which are kind of okay but probably a little limiting so snagging samples and MIDI grooves from elsewhere (or designing your own) is a way to break that ceiling or "mangling" the ones you have. To learn how to do it at first though might as well use whats available with Sonar just to check it all out.
2) Loop Constructor: Audio Groove Clips (or any audio clips) can be seriously tweaked, mangled or just made to respond to tempo changes better in this view. It's little hard to describe so watch some vids and read up on it. There are all sorts of automatable effects in there and you can get right at the individual transient "slices" to do some super crazy stuff. It's basically your "Groove Clip" editing station.
3) Matrix View/Cyclone: The Matrix View is kind of a "pad" based work area. Like a sampler but more intense because you can load up MIDI grooves as well and it's got a columns and rows system that lets you trigger single or multiple samples at once in one shots, loops, etc and record them straight into the Track View. Again kind of hard to explain so just read up on it or find some video tuts. Cyclone is more of an old school pad trigger thing where you load up samples in the cells and set them off in various ways. It has a little loop editor too (like the Loop Constructor). I kind of found it a little simpler to learn at first than the more robust Matrix view. It is pretty old though but might be a good place to just wrap your head around that workflow.
4) Synths, synths, and more synths: You can use any of the virtual instruments with just the included patches being fed by MIDI Groove Clips (or MIDI you write and convert to Grooves yourself). Rapture is a pretty "synthy" sounding one as is Zeta+. Dim Pro has more traditional sounds (but also synth patches). Session Drummer has some "808" patches (that old "dance/hip hop" electronic drum sound) and other useful sounds. Addictive Drums is more realistic but has presets that mangles the acoustic kit samples to be more electronic (and you can buy the electronic drum adpaks). Even some of the synths had drum samples you can use for beats. However really you can use any of the synths and instruments included with Sonar (there are a buttload) to season your tracks with all sorts of crazy (and traditional) sounds.
Really just get a good MIDI drum beat going and go nuts over top of it with all the crazy noises at your disposal. Groove Clips really do seem the way to go (IMO) unless you want to do things live. In which case the sampler trigger "pad" stuff is probably better.
Cheers.