I think this idea is very good.
First, moving body makes them cheerful. As we become older, we tend to sit and the chance that we move is decrease. Tango isn't so hard, so they can enjoy dancing.
Second, contact with other people also makes them happy. Human can't live without other people and when we spend time with others, we feel comfortable. And elder feel it strong, I think.
From this reasons, this therapy is the good chance elder people refresh. If there are chances, I try to dance with elders. I want to make them happy and smiley.