Why do high FPS videos look less blurry than real life? Quickly wave your hand in front of your face right now. Looks really blurry right? Now watch a 60 fps video. How come it looks so smooth? To me 60 FPS videos look even smoother than real life. Why?
Well this answer is just based on my knowledge of video cameras and is largely a best guess.

In video cameras motion blur is not (necessarily) determined by the fps but by the shutter speed (in cinema: shutter angle). The quicker/higher the less motion blur (I guess you can liken this to a screens refresh rate). Thus, things filmed at 24fps (cinema standard) but with a faster shutter speed will have a sort of other-worldly appearance as if everything is faster than in the real world. A good example of this is the opening Normandy scene in Saving Private Ryan.

When you combine a fast shutter speed with more than traditional fps (generally anything over 30) the motion looks surreal. Likely any other phenomenon is related to the way we process images and that I cannot adrquently speak of as I believe research in this field is largely mixed.

Here is a good link on shutter speed: http://www.red.com/learn/red-101/shutter-angle-tutorial