All LCD's keep each frame lit for an entire 16.7ms. 1/60th second = 0.0167 seconds. With screens that have a response time quicker than that, you're not seeing blur from the screen not being quick enough. What you're seeing is a phenomenon usually known as "sample and hold motion smearing". This is due to the LCD screen holding each frame on screen until the next frame shows up, so when your eye glides smoothly across the screen to track a moving object, each still frame actually ends up tracing a smeared path across your retina.
Manufacturers are aware of this issue, and many are working on a solution to it. One solution is to use an LED backlight which is rapidly pulsed with a single quick flash of light for each frame of video, so that each frame makes a very nice distinct impression on the retina. CRT has always been like that, which is why motion is so fluid and clear on it. But this is also why CRT's can seem to flicker or shimmer, and 60hz LCD's with this kind of stroboscopic backlight will likely have perceptible flicker too. Just a trade off for the clear motion.
Another solution is a "120hz" screen, which flashes up a frame of video, then just a black screen, then the next frame and so on, alternating blank black with the video frames. This will cut the sample and hold smear effect down by half. Though it also wastes a lot of backlight.
A still better idea combines these two, and adds in a fancy kind of temporal interpolation that analyzes a series of frames and figures out what's moving what way, then uses that information to synthesize the missing frames inbetween the 60hz frames to "upscale" the 60hz video to 120hz. The 120hz video would then be shown along with the strobing LED backlight for some pretty damn smooth looking motion, and no flicker trade off.
To sum it up, you'll be waiting a year or two for this new tech to hit the stores if you really can't stand the way they perform right now.
