Best we can tell since I haven't actually torn it down is that it is condensation (not sure from where yet but between the inspector when we bought the house and a contractor that looked through it thinks that) won't know for sure though naturally until it's torn down.
I doubt very highly they did it for anything other then looks though. There may be some things to move around but judgeing by the quality they did when it was put up and the fact that they had 12" (Yes you read that right) bolts going into the ceiling with 2x4's under it to anchor STYROFOAM (yes you read that right to!) that was made to "look" like it was wood beams going accross the ceiling I doubt very highly it was done for much else of a reason other then looks. Needless to say those styrofoam pieces came down the same day we closed on the house!
Far as the J Bead goes that's not a bad idea either will have to look into that! Thanks