Like what we discussed with Lion Dancing: how does staging fake fights help with one's growth in martial arts?
Some possible examples: Classical Chinese opera. Korean masked dances might hide something interesting. Capoeira. I think some variants of Silat have ritual dances in between rounds within ritual duels. Some arts train acting / theater as methods for stealth. Etc.
The point is that it does not matter whether someone has the expertise or credentials to offer advice on stage fighting since we're looking for ways to grow our chosen martial art. Turn the question upside-down and I say it is on-topic.
"All strikes do not hit or are exaggerated, and many of the more intense moves are controlled by the victim." <-- In context of say, teaching children, exaggerating moves and safe movements would be important.
Update: Personally, I think the original question is off-topic. The original question is asking for turning martial arts into theater. If it were the other way around, turning something from the stage into martial arts (protection of self and others), then I think that's acceptable.
"How can I adapt stage fighting techniques for teaching martial arts?"
"How can I use exaggeration to demonstrate subtle techniques for students/kohai?"
"How can I use method acting to train intention?"
"How can I use exaggeration to deliberately telegraph a feint?"
"How do I obfuscate my martial techniques with acting techniques to demonstrate reasonable self-defense in a court of law?" (Though this strays into legal issues so probably not a good question)