Static IPs are the way to go if you are hosting a site or games or anything else that others need to be able to connect to over the Internet. A static IP can be registered with domain name services, so your server can be found by users simply typing in a human readabale URL.
There's no problem with using dynamic IPs if you aren't hosting anything. The thing is, some ISPs provide static IPs as part of a business package (for example SBC has one business DSL package that comes with five static IPs) and it may be simpler to stay with what they have than to get an "a la carte" pricing for separate dynamic addresses. Or it could work out that the ISP has a good deal for dynamic IPs that fits the needs of your brother's company.
He also have the "I'm switching" advantage: "You ISP folks don't care that you're providing lousy service, so I'm looking at your direct competition. Fix things and cut my costs, and my business stays with you. Otherwise, you're history." It's worked before.