Just so it is clear it should be said that there are many instances where LCDs will be a better choice than plasmas. Now that's not just an opinion but a reality. When I was in the business, we had several plasmas returned for exchange with LCDs because of the reflection issue. True plasmas of today are better than those of yesteryear, but they still don't match the matte finish LCD for reflections. And while they are certainly bright enough, when the scenes are dark in the 10-20 IRE range, they still reflect.
Applications like waiting rooms, gyms, and many other brightly lit areas, perhaps a den or playroom even, the LCDs are going to be a better choice.
We never had a LCD returned when we were able to convince people to buy them. We have had several plasmas returned to the point that my partner has one of them in his living room. A 50" Panny. An excellent set, btw, in a light controlled environment.
So for a home theater room, I'd would go with either a plasma or a very good front projector and screen. The latter would be my preference. For brightly lit areas I'd tend toward LCD.
As far as motion blur goes, I don't notice it on my LCD screen much any more than what is in the source. I've recorded several events on my HTPC and have checked them frame by frame and guess what? There is motion blur in the frame. That will show up on any TV. For example from When Is HDTV Going to Catch Up?
this frame example:
The small size may be difficult to see the motion blur of her fingers on the microphone, if so check this link: