Yes, there's free, open source versions that do the same as Blurity. It looks like Blurity has spent time developing the user experience as well as the algo's used, even comparing with other tools on the market.
Compare the two programs and you'll see the difference in algos. Blurity loses in quality of the end-result. If Blurity is any indication of the quality of the solution that he was pitching, well, then it's no doubt he "blew the interview".
I have compared them, I've looked at the result images for both that are listed. I'd try them but I really don't care that much.
It's like saying I'll bake a cake at home with the free and open source implementation available online instead of buying it from the store.
It about how much you weigh your time and the quality of your product.
Of course, there are exceptions, the cake you buy from the store might be bad but, that's unlikely if you buy from a reputed store.
Because home baked vs store bought also have some very different qualities, both emotionally and practically. Price is just one difference.
Some people just buy cakes. A few make & buy cakes. People who never buy cakes because they can make it themselves are few, opinionated, and kind of cranky in a lovable way.
In short, SmartDeblur is a parameterized non-blind deconvolution tool. It handles only a narrow set of blur kernels: focus errors or camera movements in a straight line. Real-world motion blurs seldom conform to SmartDeblur's limitations. Also, the technology in SmartDeblur is nothing new: the commercial FocusMagic has been doing exactly the same thing as SmartDeblur for almost a decade.
On the other hand, Blurity is a blind deconvolution tool. It handles any type of blur kernel, not just when the camera was out of focus or moved in a straight line. From talking with many actual customers, I've learned that almost all real-world motion blur is non-linear in nature. Blurity is well-suited to those situations.
Of course, I encourage people to try both tools and use whatever works best on the blurs in their images.