Actually, the best thing to do is talk to someone there at ASU institute to get the best answers.
Here's my shot at answering after attending institute a few years ago in Indiana. No, you don't get kicked out for spotty attendance. Some people take the classes to receive "credit" because they may want to attend a LDS church school (one of the BYUs). But others attend for the spiritual education and socialization.
Sounds like the night institute includes activities, not replaces the spiritual instruction. So, if dancing is included at night, you don't have to attend or you can attend and just not dance. There will be plenty of people there who aren't dancing.
No idea about the parking. We had free parking, but our institute was at one of our church buildings. Perhaps it's the same there? I don't know. Again, get in contact with one of the members that attend institute (sounds like you have a way to find out through the high council dude you know).
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