Or, That horse is to small to do Dressage
Oh psh I say! It doesn't matter if the horse is 12hh or 17hh tall, if it has the right mind, the right heart, the right training and the right rider...heck, you can do pretty much anything!
I'm dead set on working Divo in Dressage, I don't care how small he is
He may not be capable of Grand Prix moves, but he'll definitely be a good Dressage horse. He can trot soooo slowly and animatedly it almost looks like he's preforming the piaffe.
There are many horses that work cows or jump fences and you think, "Oh, that horse is good at fences but I bet would excel at barrels." or "Oh, that horse is good with cows but I bet would work so well at Dressage"
You definitely don't need fancy, you just need to know what to look for ;)