The main advantage of dynamic linking, in my opinion, is that if the libraries get bug fixes or improvements, you automatically benefit from that.
The main disadvantage of dynamic linking is of course that if the library becomes backwards-incompatible or gets dropped, you have a problem.
But small improvements happen much more frequently than big backwards-incompatible changes, and even if the latter affects you, you can still just do a quick repack without even having to recompile.
So in my opinion, static linking is only useful in these circumstances:
- You want your binary to run in a wide range of different environments (e.g. because you're doing a closed-source release), so you cannot assume anything about the presence of libraries
- The libraries are "good enough" for your use of them (not likely to improve or contain bugs), and you are releasing something that will not really be updated/maintained, i.e. development has stopped and you're releasing the "final" version.
In the context of the Pandora, I think static linking is only useful for finished closed-source games. Even then, if they rely on libraries like SDL, dynamic linking is probably better because tweaks in such libraries could be beneficial and they're unlikely to break backwards-compatibility.