I wasnt there. I just want to answer #1, #2 and #3 based on my experience
#1 correct, if a girl isnt interested in a guy and want a harmless way out she would say I am sorry you are a great guy but I prefer someone of similar background(racial in this case). i dont think it is racist at all. It really IS a firm and harmless NO.
#2 A girl should never approach to a strange guy first to ask for a dance. (Friends are excluded from this rule). Too bad,lesson learnt if she doesnt know.
#3 This is controversial. Westerners are better than Chinese in this regards. Guys are better than girls as well. I wasnt there. I cant comment too much but if this is true I hope Chinese guys could improve in the future and dont lose our face. I personally have never had any Chinese guy friends like this. I've seen it happen but I dont make friends with cheap guys I guess.