Here are the images of my test level to check static meshes plus soft shadows:
The first image shows you the level without any lighting, flat and ugly:

And here the same scene with one point light creating shadow-maps for blocks and static model-meshes:

This makes quite a difference.
Torque games can be quite beautiful now. The crazy thing about this is: The shader-demo of Torque claims that the shaders work even on top of light-mapped geometry. Imagine this, how beautiful a level can be.