It was static in the past due to size limitations. I like it better this way, but for people who the backgrounds and flashing colors bother them when playing Lumines, this game is going to annoy the shit outa them. When Shake Ya Body started I nearly went blind. But I love it. It's all part of the Lumines experience.
It was static in the past due to developer time limitations, the staticness actually increased size and reduced quality dramatically, since the backgrounds used to be just FMV.