Well, according to Wiki:
The British music press (notably NME and Melody Maker) called this genre "shoegazing" because the musicians in these bands often maintained a motionless performing style, standing on stage and staring at their effects pedals or the floor while playing their instruments; hence, the idea that they were gazing at their shoes.
It makes as much sense as "rock," "grunge", "new wave," or "emo" to me.
I dunno. Just kinda sounds like Prog-Rock to me.