We can crawl dynamic URLs and interpret the different parameters. We might have problems crawling and ranking your dynamic URLs if you try to make your urls look static and in the process hide parameters which offer the Googlebot valuable information. One recommendation is to avoid reformatting a dynamic URL to make it look static. It’s always advisable to use static content with static URLs as much as possible, but in cases where you decide to use dynamic content, you should give us the possibility to analyze your URL structure and not remove information by hiding parameters and making them look static.

The lowdown from Google dispelling some of the myths regarding Dynamic URLs vs. static URLs. Interesting that they chose to highlight that particular sentence.