In have a usergroup that is considered "staff" but doesn't have moderator capabilities. They're more like resident experts that are recognized and have special privileges. How would I include this usergroup as staff so that they're displayed in sidebar widgets (I'm using the Widget Framework) and other places? Or is this not possible? Would it make sense to have an option in the usergroup settings to mark the usergroup as staff? That's where I had looked.
Prior to 1.2, when that setting was introduced, the staff block worked on an individual basis by checking if the user was explicitly an administrator or moderator.
The approach changed to the "display user as staff" flag in 1.2 to allow cases such as yours. As it is still checking individual users, the option is still individual (you could have non "admin group" Administrators in 1.0 and they'd show up).