This article is from the Ballet and Modern Dance FAQ, by Tom Parsons twp@panix.com with numerous contributions by others.
Yes, in ballet they do dance literally on their toes, wearing
special reenforced shoes to help the toes bear the weight of the body.
(The technical term is the French "en pointe," usually Englished as "on
pointe." Dancing on pointe lends an etherial, weightless appearance to
the performer. This was part of the romantic image of Woman, and it has
persisted, in one form or another, to this day. But pointe work also
lengthens the line of the leg, and ballet is a form that favors long
lines.
Pointe shoes have reenforced toes to provide extra support for
dancers going on pointe. As you can imagine, the force on the toes is
considerable; the reenforcement distributes this force over the entire tip
of the foot. Dancers usually add padding of some sort inside the shoe to
cushion their feet further.
 
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