Seeing the dwarves dance in the street is a very different experience from seeing the paid performances. The singers and dancers are very tired, because they’ve been performing all night, and they’re covered in sweat.
You’re much more immersed in the experience. Ont he other hand, it’s hard to get a clear view for photos.
On the other hand, you’re much, much closer to them. Near the end, people can, and do, take photos with the dwarves – especially photos of the kids.