As I recall, they told Henry he just wasn't quite up to snuff.
I think what ends up happening is that better overall dancers are cut in favor of fulfilling a quota for types of dancers. Henry is probably a better overall dancer than Mussa (sp?), but he might not be as good as blond fauxhawk boy. The judges kept Mussa because he fills the "street dancer" quota.
"I am open, and I am willing,
For to be hopeless would seem so strange.
It dishonors those who go before us,
So lift me up to the light of change."
Holly Near