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The individual fibers of static grass are pretty resilient, in my experience - if they're well secured at their base, gently rubbing the area to undo the matting that holds them flat tends to pop them back up into a natural state. I haven't done any serious/long term tests to this effect, though, so consider the evidence I'm reporting anecdotal and weight it accordingly.
A few of your worries, though, I think are unfounded, at least in that they can easily be circumvented. First, the issue of storage. If anything would kink and mat the grass irreparably, it would be long term storage in a direct stack. It would be simple, though, to pop little spacers between the boards. Even a few millimeters (1/8") would be enough clearance to let the grass stand without appreciably increasing the necessary storage space. A few chunks of sprue would be sufficient, let alone a dedicated storage rack (a box with one open face and runners down the sides, allowing the boards to be slotted in above, but not touching, each other) or fancier spacers.
Second is cost. Static grass isn't appreciably more expensive than flock (possibly a bit more for equivalent coverage, if you want it applied densely). The costly element is usually the applicator, some of which run into the hundreds of dollars. Applicators, though, and surprisingly effective ones, can be made for pocket change without requiring much skill or know-how. I made one out of an electric fly swatter from Harbor Freight, a tea strainer (half of a large ball-style tea infuser, technically), and spare wires stripped from dead electronics - all for under $10, including batteries (D cells are expensive, but were included with the swatter/zapper). Took no more than an hour of fiddling, works surprisingly well, and if I had been more careful in the construction, would look nearly identical to some of the cheaper models that have come out in recent years.
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