>Isn't motion blur the best workaround to mitigate this problem?
Motion blur in real life reacts to eye movement. When you watch a smoothly moving object, your eye accurately tracks it ("smooth pursuit") so that the image of that object is stationary on your retina, eliminating motion blur. If there are multiple objects moving in different directions you can only track one of them. You can choose where you want the motion blur just by focusing your attention. If you bake the motion blur into the video you loose this ability.
I guess it just comes down to aesthetic preference then.
If there's motion blur on something I'm tracking in smooth pursuit, it doesn't seem particularly objectionable. (I guess I also wonder how accurate the eye's smooth pursuit is -- especially with fast objects in video games, surely it's only approximate and therefore always somewhat blurry anyways? And even if you're tracking an object's movement perfectly, it can be still be blurry as the video game character's arms move, its legs shift, its torso rotates, etc.)
Whereas if there's a flicker/strobe effect, that feels far more objectionable to me.
At the end of the day, my eyes are used to motion blur so a little bit extra on an object my eye is tracking doesn't seem like a big deal -- it still feels natural. Whereas strobe/flicker seems like a huge deal -- extremely unnatural, jumpy and jittery.
Motion blur in real life reacts to eye movement. When you watch a smoothly moving object, your eye accurately tracks it ("smooth pursuit") so that the image of that object is stationary on your retina, eliminating motion blur. If there are multiple objects moving in different directions you can only track one of them. You can choose where you want the motion blur just by focusing your attention. If you bake the motion blur into the video you loose this ability.