This isn't the best test since your brain compensates for saccades by censoring input for a while. And it has built-in motion stabilization which allows you to read a sign while walking down the street.
A better test would be to look at your finger or hand while waving it very quickly. You'll see motion blur as your finger moves. In certain cases, you can see individual "frames" as an afterimage. E.g, if you look at a modern car tail light, the LED isn't on consistently but uses PWM to blink really quickly. So if you move your eyes while looking at a tail light at night, you'll see a series of dots rather than a blurry image. Once you learn this trick, you can distinguish between analog lights and PWMs by noticing if they are blurry or discrete.
For fast moving things outside of ego motion, I can see a reason to use blur (e.g., your hand waving).
Indeed, it's almost impossible to turn your head slowly without your eyes fixing on points in your field of view, and then saccading to the next point. Try it. This is a hard-wired response. (You can perform some tricks to do it, like completely blurring your eyes, but that's not really the point.)
Meanwhile, if we watch a video with the camera turning, it's easy to keep our eyes staring straight ahead.
This shows that there is going to be a difference between a head naturally turning and watching a video of a head turning.
I think you're describing saccades as just being the "dropping out" of frames, and not including the extremely-relevant motion that our eyes do during a saccade.
I think the only thing I can say here is - I dont see anything weird when I turn my head, and when FPS games added blur to "character moves his own body", it felt much less natural, not more. So, to answer question a few posts up "how would we do it?" I'd just say "The way we always have before we got enough GPU to make everything look like a movie"
Actually I think motion blur is more of a (futile) attempt to hide low frame-rates because we don't have enough GPU to render the ever more demanding scenes.
You say it yourself: "your brain compensates for saccades by censoring input for a while. And it has built-in motion stabilization which allows you to read a sign while walking down the street."
On the rare occasion I've been able to play a video game at 120 fps—my projector is limited to 60hz, sadly—I've found that I prefer to play without motion blur.
The biggest three crimes are blurring an object too far, blurring things that shouldn't be blurred, and blurring an entire scene (which I guess just results in #2, so maybe there's really only two crimes). The most important thing is that motion blur should be subtle. Properly-done motion blur doesn't make a game look blurry, it makes it look more real and smooth.
If an object is moving 50 pixels between frames, then the blur should not be more than 50 pixels wide. Really, it should likely be only 25 pixels to make the blur more subtle. But for some reason, racing games love to apply a full radial blur to an entire scene while going fast, and to me it just ruins it.
Likewise, an object that is not moving relative to the camera should have no motion blur at all. This is where so many games get it wrong. As you rotate, they blur the scene using post-processing. In a completely static scene, this makes sense and is a very computationally-efficient way to perform motion blur. But if you're rotating because you're tracking an object, the tracked object should not be blurred. If you're in a racing game and the car next to you is going the same speed as you, the other car should not be blurred.
Really, the only guaranteed way to get correct motion blur is to render multiple entire frames in a row and then blend them, but you need a LOT of samples to make this look good, or else something like a vertical line looks like a series of vertical bands as it flies across the screen, rather than a smooth blur.
The best is probably a hybrid approach. Render each object in the scene on its own and apply a post-process blur on a per-object basis based on which direction it is moving relative to the camera. Though Z-ordering could end up becoming a major challenge.
No, it doesn't make sense because due to eye movement that's not how turning looks in the real world. Any game that blurs the scene on camera rotation is doing it wrong even if nothing else is moving at the time.
It's impossible to do it correctly without very low latency and high precision eye tracking so the best you can do is to not blur anything that the player might be focusing on.
It's photorealism, not realism.
When I snap my head (or eyes) around, I don't see a blurry image, I see the new image, and my brain drops the intermediate data. You can test this by looking at yourself in a mirror, focusing on one eye, then another. Do you see your eyes or face or anything blur?
Adding blur just delays the presentation of the new view when moving your POV in games. It's distracting and unrealistic.