Hi Bill,  Probably the piano was made like that, as loads of player
pianos have keys that don't move, for various reasons; in some players
for relieving weight of the player mechanism, but mostly to prevent
the keys from wearing too fast.

In my player piano (that is not yet working) I tried to make the keys
move by putting little weights upon them inside the cabinet.  This
works, but remember that in that way you are altering the piano action,
which originally is very carefully balanced, so it'll probably feel
different when playing the piano by hand, and probably it'll make a
difference for the player mechanism too.

Whether or not it's bad for the piano action I don't know, but probably
the keys will wear out faster.

Greetings,
Niels Berkers
The Netherlands
http://members.home.nl/japberkers/Waddington