It is. After the MoP revamp, it now drops off the Herod wannabe (second boss in SM:Halls). However with the old SM wings back, you can also farm it from there.
The Scarlet Crusade will never truly be defeated. All of their recruitment posters still have a foldout of Sally Whitemane or the dancing Scarlet soldier on them. No other faction comes close to their top tier advertising.
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Ah, but the Ebon Blade now has Sally Whitemane herself… and what dancing Scarlet soldier?
Probably referring to Joseph the Awakened (the Crazed) (also the Insane).
He was the Alliance NPC that handed out Scarlet Monastery quests during Cata.
Unfortunately, he was removed when they revamped the dungeons for MoP and added in Voss.
His shtick was that he begins as Joseph the Awakened for the first two wings. He’s rebelling against the Scarlets after learning what they were all about (attacking the living and all that).
But as you progress through the wings, he becomes more and more unhinged. He wants to remake the Scarlets with him as the leader and turn Lordaeron into a “Scarlet paradise”.
He becomes Joseph the Crazed and, finally, Joseph the Insane.
At that point, he’s found in the Cathedral wing, dancing in the central fountain and completely mad.
No one knows what happened to Joseph after the revamp.
Maybe he died.
Maybe he’s still out there, dancing.
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We can only hope he’s still out there dancing like a mad man. In all seriousness, it’s those small details like the progressive decline in his mental state that make wow so great. You just really have to keep your eyes open