However, would there be a recommendation on importing that list from SFDC to have everyone just pop into a static list. Or is that primarily used for if I know most of the people would not already be in our Marketo database?
Not sure I understand the question?
"Skip new people and updates" (which could be far better phrased in the UI!) is the way to just add people to a Static List from a CSV without any collateral damage/loss.
However, it still takes the preparation of an external file, so it may prove easier to just have a Smart Campaign that adds people to the Static List, and paste a bunch of names into that Smart Campaign's Smart List (filter: Email Address [is]).
500 email addresses should fit fine. The limit is actually by # of characters, not # of lines.