The former is often hated because it causes motion sickness, but it can help for rapid camera moves on low framerates. The later is generally just pretty good looking.
It’s more or less dedicated to that issue
Another thing that can help is black frame insertion (thus removing the sudden “jump”)
Those techniques have actually been around for a long time in traditional, handrawn animation.
https://www.traditionalanimation.com/2017/smear-speed-motion...
There are two kinds of choppiness that happen in recorded video:
1. The amount of time/motion between captured frames (framerate).
2. The amount of time/motion captured by each frame (shutter speed).
You are right that the instantaneous shutter used in rendering maximizes the choppiness of a given framerate. The solution you described is a feature in most rendering software called "motion blur". If you want perfect motion blur, you have to render enough intermediary frames to cover the motion in a scene across every pixel it moves across.
There are a few other less obvious places shutter speed choppiness comes into play:
1. Cameras. Some digital cameras have a physical shutter that opens and closes, and all of them have a speed at which light is captured by their sensors. When using a shutter to record video, there is a non-zero amount of time that is skipped in recording.
2. Lighting. Most lights have a framerate that matches the local standard alternating current rate: 60hz in the US, and 50hz in Europe. This is why NTSC is 60fps and PAL is 50fps. Different types of lighting fixtures have varying amounts of flicker, because they don't keep the same amount of brightness over each alternation of current. Florescent lighting is well known for (often) having a noticable flicker. You can see the effect of flickering lights by waving your hand in front of you. If it looks like a blurred motion, your lights aren't flickering. If it looks like you have many transparent fingers staying in place, then you have flickering lights.
Because resolution has been steadily increasing in popular media, but framerate has not, most filmmakers have been using faster shutter speeds to compensate. If you have motion across 10% of the screen over 1 second at 30fps, then during each frame, that motion will cross 1280px*10%/30fps = 4.266px of a 720p video, or 3840px*10%/30fps = 12.8px of a 4K video. A slower shutter will give you motion blur across those pixels, yeilding an effective resolution close to 1/4.266 of the 720p video (168.75p) or 1/12.8 of the 4K/2160p video (still 168.75p). A faster shutter would remove the blur, replacing it with an uncanny teleportation: the same that makes your fingers look copied and transparent when you wave them in front of a CRT monitor.
In order to get a smooth and clear/focused motion over 1 second across 10% of a 720p video, you must have a framerate of at least 128fps. 384fps for 4K. Now consider that most motion we capture in film is faster than that; some of it much faster.
What you suggest trying is actually possible with quite some games/engines. Some other commenter mentioned the source engine, I did it once with trackmania a good decade ago. It does very much amplify the feeling of speed.
I have another hypothesis on "smoothness" of animated images. Most of computer-generated animations are unnatural and not cinematic because the objects jump between frames instantly while in real life and on a camera film they move smoothly. The hypothesis is that if the animation was closer to real life, then it would look really smooth even with lower fps, for example, 24 fps or 30 fps.
For example, when moving a mouse cursor, it jumps between points every 16 ms instead of moving smoothly. You could argue that a human is unable to notice such tiny details, but here is a simple test to find out: take a mouse and move it in a circle, so that it makes 2-3 turns per second. If a real object would move with such speed, all you would see would be a blurred circle (you can take any real object and see for yourself), however with a mouse I can clearly see a circle made of about 10-15 mouse cursors. So the animation of mouse cursor is unrealistic, computer-like and it can be easily seen (I noticed this effect long time ago but initially thought that it is a problem with Linux or slow graphics card).
So to make a smooth animation you could use oversampling: generate an animation at say 6000 fps, and blend every 200 frames together (remember about non-linearity of RGB values when mixing colors). If by chance anyone has some free time and curiosity, could you test it?