He's simultaneously observing someone else dance and watching a metamorphis.
The bass line and stattaco violins suggest disco - often considered a self-indulgent music - and the lyrics about "dancing all by herself and not minding" also reinforce that. Is the act of turning yourself into a diamond and giving the world your light suggest something that Callahan is going through. His name change from (smog) to Bill Callahan suggest a change from conceptual, indirect art to a more direct singer-songwriter model.
He's simultaneously observing someone else dance and watching a metamorphis.
The bass line and stattaco violins suggest disco - often considered a self-indulgent music - and the lyrics about "dancing all by herself and not minding" also reinforce that. Is the act of turning yourself into a diamond and giving the world your light suggest something that Callahan is going through. His name change from (smog) to Bill Callahan suggest a change from conceptual, indirect art to a more direct singer-songwriter model.