Why would this be the case? I thought it was a cool feature to put what you're listening to on the side, so even while you browse through the music, you could have a static reminder of what's playing. But no. Kirk says it's flashy and moving and random-- just like (gasp) a Flash ad. Apparently you can turn it off, and have just a static graphic sit there. But that doesn't explain why anyone thought it was a good idea in the first place.
To be completely fair to Apple, I haven't actually used the iPod Classic myself yet-- maybe there's some useful function that can come out of showing random, moving art (suggestions for what to listen to next, maybe?). But flash for flash's sake like this seems a weird decision on Apple's part, especially in a device that's supposed to be a Classic iPod.