On that we might agree that people over think it. Becasue while he knew music theory, it was just a foundation for learning how to play. He created probably like most by noodling from all his influences. His music composition classes helped him to frame them into palatable songs for the masses.. In the begining he was at his most experimental, but as he created a bag of tricks, he seemed to go back to them on subsequent songs.
The chord progression in Dance the Night Away and Panama have similarities. It's been a while but I think he uses some inverted chords. Also the bend a note, then tap like in Panama is a lick he does on many solos. He pretty much stays in the Major, Minor Scales, and Pentatonics, but will venture out if it sounds right.
It's not rocket surgery. While a music theory analysis of his music might be interesting, the best thing for learning it is a slow down program, Tab, and Curt Mitchell DVD's..
A bad ass 12000 series doesn't hurt either..
