It is however still movement, which is important because static electric fields don't produce magnetism, whereas moving charges do - which is the principle benefit of AC current.
Well, technically that depends on your reference frame. If the _observer_ starts moving, they will observe a magnetic field where before there was only electric.
It’s not that static electric fields “produce” magnetism. Magnetism is a result of relativity.
Plus, with AC, the electrons move back and forth, instead of just moving forward!