Static and Dynamic objects : You have it roughly correct there.
To understand it - think of your game engine objects in terms of the real world around you. So walls and or other very dense heavy objects usually cant be moved so you don't need anything related to dynamics turned on for them. Of course you have to use your discretion - a heavy object could also be moveable - a car or a heavy wall even if you bulldoze it or blow it up
On the other hand something may be heavy and not able to be moved but may have a moveable part.
Examples of dynamic objects may be living organic things or moveable mechanical or electrically operated equipment and so on just as in the real world. e.g, a butterfly or a helicopter. Very different sizes and weights, one organic, one not and with different movement characteristics but both dynamic.
Dynamic objects which move can have these very different characteristics and as well as being affected by Physics and weight they may be affected also by friction, resistances, gravity and other forces around them - e.g. wind, collision and so on.
Remember that at the moment in Reloaded Physics is not yet anywhere near fully in place leave alone any specific additional work that may eventually be included relating to the other forces of gravity and so on and this will limit what you can do currently to a large degree.
Two examples here that are somewhat opposites might be a heavy light fitting which might fall on your head if it is dynamic and cant be held up at the height you want it and falls to the ground. A balloon which may be very light and does not need to fall downwards under most circumstances but would usually float away endlessly upwards - if outdoors and you have wind and other physics forces to carry it away.
You don't have wind so cant easily have it drift in numerous directions at once. e.g. upwards to the left and so on.
We are a bit short of such physics and other associated real world properties for all kinds of objects at the moment.
As to your performance issues not sure but there are many ways to keep the performance at a high currently and not using too many dynamic objects may be one of them. Firstly if you are having an issue with performance then try and start off with a high level before you start adding too many things and then add things slowly and test to see how they impact.
If you need to save/boot performance then turn down whatever quality settings are necessary to get it back up.
As far as I am aware running into your table may or may not cause a sudden drop in being Physics issue related I don't know personally and not experienced anything like that. If you do then don't keep running into your table. Place things in more than one location if they are collect-able to avoid the issue.
If you want the entities not to be collectable make them static and immoveable. You may have to change any script a collectable/dynamic object has to a default static object script. Just be careful what you are doing and don't mess up your default objects install.
Hope that helps a little.