My Bloody Valentine still destroys all else in that genre.
(I still wonder to this day why the hell it's called shoegaze though...)
My Bloody Valentine pretty much inspired the genre.
And I can explain why. (Source:Wiki)
Shoegaze bands are known for using many effects which means foot pedals are often used which limits their movement on stage. A vocalist from the band Moose got criticized after one gig because he stood in one spot the whole time looking down as if he was reading lyrics on paper on the floor. So really, it looked like he was just gazing at his feet throughout.