Julie described the group of men as 'gawking'; as far as I'm aware, this is more or less interchangeable with the term 'ogling', in common use here in the UK. This is significantly different from just staring - it implies a sexual undercurrent, i.e. paying particular attention to someone's physical characteristics. Maybe this is a cultural thing, but the clear implication in the original report was that the staring/ogling was inappropriate, particularly because it was undertaken by a group solely consisting of men.
Ogling is defined as "stare at in a lecherous manner."
The hard part here is defining "lecherous" but it would seem to imply that he is watching in a way that signals sexual intent.
It's worth noting that women are generally much better at interpreting body language than men are, so it's possible that a guy is watching the woman dance and getting some sort of erotic enjoyment from it, tries his best to hide it but some subconscious subtle clue gives him away.
Having said that, hoop dancing would seem like an inappropriate thing to do in most offices to begin with but I would say the same thing about nerf gun fights.