simX I think it's just the semantics of the meaning dynamic you're pointing out and a slight misunderstanding of how the System Services work.
The thread I referred to and that particular sentence I think you are referring to...
"I was able to confirm the dynamic nature of the Services menu updates by simply..."
was describing the mechanism of how an application builds it's own Services menu and why rharder was seeing his littered. The paragraph above it describes the mechanism in detail down to the event level.
There is still an unknown in where the application that wants to use another applications services is attained. But a logical assumption can be made. The assumption is the relationship to the LSxxx trio files found in the /Library/Preference folder of each users home directory (what I think are the file(s) that System Services events parses. Either all of them or 1 or a combination). This would be the repository of all the apps that offered their services. The updating of the LSxxx files are dynamic as well. It is updated every time a user logs in (arguably dynamic) and "Lazily" (explained in the last paragraph of this post).
The dynamic nature of System Services is in how the menu is built in each application that wants to use System Services. The actual Cocoa message is setServicesProvider:, calling NSApplication (the application delagate that is responsible for event handling for the application in question). This is done at runtime (when an application is launched). This is its dynamic nature because it is not hard coded in the application that uses System Services.
The System Overview files states what you describe as "...it's only updated once in a while." thusly;
"Because there may be locations in the file system a user has never visited, or documents of a type she has never attempted to open, the Finder might have an incomplete view of the applications available on a system. Yet it has a built-in capability for "lazily" updating its view of the file system."
http://www.press3.com/forums/showthread.php?s=&threadid=10457
"Lazily" is not explained and I believe still undocumented. I haven't checked this since that post I made.
respectfully,
Klink