I would say that motion blur is probably an essential tool of the pixel animator, because usually framerates are so low that it's hard to make large movements smooth without increasing the number of tweens, which would slow the animation down. I wouldn't call it a fancy effect at all.
However, I have found it's useful to determine a project-wide threshold for when you use motion blur, so that you aren't just blurring the smallest of movements. Pick a distance/time (speed = pixels moved/framecount) that motion blur will kick in, and stick to it. I actually think that's a problem with the kicking lavender man that friend posted, the arms moving back actually seem faster than the leg because they are skipping a distance without blurring (showing a tween which does not exist) whereas the actual kick itself is blurred and thus less fast.