Here is an interesting New York Times article about the movement in the ballet world from large elaborate sets and tutus to more scaled down costuming and stage design. The article seems to insinuate that a choice must be made between a more traditional ballet design versus a contemporary style. I think that it is quite possible for companies to use both styles pleasing conservative boards while pushing the art form forward. The other result of using both styles of visual artistry is that varying movement qualities result. So much of the movement quality can be dictated through the costuming, as I explored in my choreographic piece Limitations. In working with my dancers I was truly fascinated by just how much costuming can either free or limit dance, while adding another layer to audience's visual feast.
Another interesting point that the article makes is that European ballet companies have used more contemporary design than American companies as result of a blending with modern dance. Perhaps this is why companies such as Stuttgart Ballet have been so creatively forward in recent years. However, American companies such as Joffrey and Alonzo King's Lines have followed this trend as well.
It's truly magical when artists can combine their talents though they comes from different styles such as modern and ballet, or even different artistic mediums all together. Some of Rochas designer, Olivier Theyskens best work came from wardrobes inspired by the work of Monet. I think this synergistic energy can only add to the dance world as well.

