1)A static link to a context is likely to cause a memory leak. It means that a reference to the Activity will be kept around in the static variable even after its destroyed, so all of the memory of the activity and all its views will remain valid and not be cleaned by gc. You can do this, but you have to be careful to null out the variable when done. Its better just to avoid it.
2)Its a little bit awkward to pass the activity as an Activity, but no technical reason not to. At that point we're arguing over code cleanliness/maintainability. And there are times where the non-clean solution is just easier. Of course in the cases above I'd rather pass the orientation/display/Resources objects to the function than pass the entire context or make special accessors.