Thanks for all of your suggestions! I really appreciate it.
Turns out I was horribly wrong about something: Distance.
Distance wasn't the issue:
http://i1382.photobucket.com/albums/ah248/Tripliss/leveled1_zps605p6lfc.png
Elevation was.
http://i1382.photobucket.com/albums/ah248/Tripliss/leveled2_zpsqjnkii1k.png
I leveled it out completely and though some still try to dance next to the DJ, they can even dance as far away as the door, as long as there is no elevation in the way. That glass noise you heard was the sound of my mosh-pit-esque dreams being shattered. I could still put the DJ in the pit though, I suppose. Wouldn't be quite the same, but it'd be better than the boring old no-elevation thing going on in the screenshots in this post.
@NZsimm3r Naw, I take what I can get. Was more funny than annoying. Sometimes it's nice to be right, even if it leads to an undesired outcome. XD
@Jessa_Dakkar Along these lines, I've been considering making a special club and cheating a door onto the fence, then locking the door for only club access. Then I might be able to still pull off automated DJ while locking him in. The hitch in the plan, of course, is that the game generates DJs, so I have no way of knowing for sure who to put in the club at any given time and I would probably need to babysit it with a played sim.
The alternative... teleporting, like you said, or an exclusive club door and only have played sims DJ. But I'd rather keep it as automated as possible, so I don't have to babysit the booth.
@Mightydan I've not tried this yet, but I'm curious to see what kind of difference it might make overall. The potential drawback (and the reason I used a bunch of small tiles) is because I wanted to avoid "oosh oosh" city, with sims getting pushed off the dance floor all the time when another sim tries to show off moves.
@Sid1701D9 I think there is room, since there are so many separate dance tiles, but I may experiment with this a bit more. You may be right.