Pretty sure he is talking about using it as a terrain material.
Static grass is a rayon fiber and it bends a lot. If it bends, it tends to go back straight after it has been bent.
The big issue with using static grass on terrain features isn't so much with it bending - rather with it getting rubbed or scraped off. In the best case scenario, your glue point is maybe a quarter millimeter of surface contact. Not much at all and difficult to get a good connection. This isn't a huge problem with figure bases, as not much is ever set on top of them - but with terrain which has figures, hands and the like pushed, scraped and otherwise abusing it...it can shed pretty fast.
That said - it can be durable. The same material which is used as static grass for gamers has been used to line storage boxes for a few decades now. Proper adhesives and techniques will get it stuck in place. To make that process a bit easier - you might want to look at static grass matts and clumps:
http://www.sceneryexpress.com/departments.asp?dept=1032
They are glued in place fairly well, so when it comes to attaching them to your terrain you have a larger single item to apply as opposed to a bunch of fine fibers.
After that, keep a big stick handy to smack anyone who scrapes their figures bases across your terrain.