Why do high FPS videos look less blurry than real life?
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