That's typically called 'motion smoothing' and yeah that's trying to interpolate frames to manipulate lower framerate video (like 24FPS) into higher framerates in an attempt to make scenes like panning shots 'smoother' at the expense of a soap opera feel and interpolation artifacting.
Whereas what Blur Busters (and similar enthusiasts) are focused on is how accurately frames are (perceptibly) displayed on the screen, so ideally each input frame is perfectly presented without any interference from prior frames (due to limits of panels in keeping up with changing the pixels from one frame to another, very rapidly, causing blurring).
The ultimate goal, in a perfect scenario, is for input from say a video game running at 60 frames per second to have each frame perfectly rendered like individual screenshot stills, one after the other. In reality for most monitors displaying such content there's not enough distinct separation between frames, leading fast changing pixel content (like objects moving) to blend into each other, causing blurring at the monitor level.
The BFI technique, by inserting alternating black frames in the output, mitigates the inter-frame blending issues since instead of the prior frame being various colors (ie: of the prior input frame) it's starting from pure black which dramatically reduces frame blending artifacts and perceptibly makes the motion clarity more distinct.