Personally I think motion blur should be a part of modern games.
As humans viewing a scene there are two moving parts, your eyes, and your head. When you spin around to look at something, your eyes lead the way, moving faster than your head, which prevents you from having blurred vision.
In a game, your eyes are stationary and fixed in your head, so motion blur is a good way of exaggerating movement.
I guess it depends whether you are trying to show the scene through the eyes of a human, or on a TV screen. I doubt if a game shown from the perspective of human eyes, with all the seeking and searching that eyes do all the time, would be possible, or indeed playable. Most people view sports such as racing, or footage from an aeroplane, on a TV screen (which naturally does have motion blur), so to include motion blur in a game is completely realistic.
If it's done well, I think motion blur can be a valuable addition to the visuals of a game.
