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The point is that ego-motion-blur is dumb. (It can also make players motion-sick.)

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."

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I think the best implementation (without eye-tracking) would not motion-blur the entire scene when the player moves themselves (ego-motion-blur) but would blur moving objects. However, if the player's view motion happens to coincide with the motion of objects in the scene, for instance if the player is tracking the object (maybe another player so they can shoot it in an FPS) then the object-motion-blur should be reduced according to the degree of tracking. I'm sure some game engines already do this.

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