The reality TV judge and West End star said that previous Got Talent champions such as Diversity and George Sampson and finalist Tobias Mead had set the bar too high for new street dance acts.
"I think I have seen enough of street dancing," said Holden. "Diversity and Flawless had such a wow factor, which they still have now, and they make everything they do really inventive and exciting.
"They set the bar really high and a lot of the dance troupes we have on since then just don't live up to the expectations we now have."
She continued: "These street dance crews come on and say they're going to be amazing and unique and quite often they're not.
"It's frustrating when we get great dancers come on and do a routine that they come on to, which someone else has choreographed. What makes Diversity and Flawless's work so good is that it's so organic. It all comes from within the group.
"There isn't a teacher telling them what to wear or where to stand. It's not cool, it's not what I want to see at all."
The mother-of-two joked: "Bring back Lycra and sequins, I want to see more than that."
Britain's Got Talent launches on Saturday, March 24 at 8pm on ITV1.
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