That sounds like it would be a good pipeline to keep things “live”. But because the motion blur is not an “effect” that could be shared between apps (it’s really the comp looking after that for you- perhaps premier has a shutter based motion blur on its comps?) it may need to be rendered in AE to make pixels that blur.
I just can’t believe, given Adobe’s history, that Premier and AE are that aligned/transparent to each other. Every effect would have to work in exactly the same way, in the same color space, with the same kind of motion graph editor. The stack order, easing algorithms, and blending functions would all have to be identical – even the way you can extend footage in AE: I’ll bet dollars to donuts can’t be done in Premier (and hence your shortening clip length)
Premier used to be an editor, so if you wanted complex motion or effects added you went to AE and rendered those and brought the resulting footage back in. The motion curves in Premiere were just so primitive you just couldn’t do the things you could do in AE. But that was back then, and perhaps I need to look at Premier again, especially since Final Cut has lost its mind.
It’s always seemed to be Adobe’s policy to keep every app’s specialty separate (it’s why we don’t have a stellar paint plugin in AE, which is desperately needed, even though Adobe owns the preeminent Paint package)