Flaps 1 in the 737 does move the flaps. It unlocks them which causes them to shift slightly.

Flaps 30 is the standard flaps used for landing on a medium-long dry runway. Flaps 40 is typically used though because it provides more drag, quicker landings, and is easier to get to the gate. The flaps are also kept in better condition if occasionally run through their full length. I was taught to use 40 wherever possible in training.