I always shoot 24 progressive. Well, no, I shoot 25 progressive because I'm in Europe, but 24p is your equivalent. PF24.
And always in Cinemode.
I do this for various reasons. One, because it allows the shutter to open up to 1/24 (or 1/25) where needed to compensate for crappy lighting. Although - this seems to be the opposite of what you want. Obviously, longer shutter times = more motion blur. But I find that the advantage of an added stop of light when you need it far outweighs less motion blur if the less motion blur version is underexposed (or overly noisy because more gain is added to compensate).
Cinemode limits the gain to around +6dB or +9dB ish maximum - any more than that and it looks like utter shite. It also does less internal processing and fiddling about with the colours and contrast - more natural colours and wider dynamic range. Although, it means you can't set shutter- or apeture- priority mode - you can only set the overall exposure manually.
Also, quite simply, interlacing is archaic. I heartily believe it's a stupid concept, and I long for the days when it's relegated to nothing more than quaint little museums and History of Video texbooks. The de-interlacing done by most NLE software is often pretty poor. I always run interlaced footage through a Avisynth script with a tdeint() before any other processing. Poor de-interlacing algorithms will definitely blur the image. The only time I would ever voluntarily shoot interlaced is if I wanted to do some on-the-cheap slow-mo.
So basically 24p mode just means the shutter can open longer leading to better exposure but more motion blur, and Cine mode means you can't manually force the shutter to stay above a certain level.
If you want to minimise motion blur, you're gonna want to keep the shutter open as small a time as possible. You can put it into 24p but in shutter-priority to control it. But this way you get none of the advantages of Cine mode - dynamic range, colours, gain, etc. Or, I think, you can put it into 60i but in Cine - this way you can't control the shutter but you can be sure it won't go below 1/60. This way you get the advantages of Cine mode, but also all the disadvantages of Interlacing.
Certainly, you do not want to be limiting the shutter speed to anything less than the 1/60 limit imposed by the 60i mode you're currently in. Not in indoor concert enviroments.
But to be perfectly honest - I see nothing wrong with your sample. It's obviously hard to tell with the YouTube compression, but it looks sharp and bright enough to me. Can you post a full size jpg screenshot taken from the original M2T file? At the end of the day, for a tiny hand-hold-able camcorder in a little club with cheap lighting, there's gonna be a ceiling. I have a feeling you're at it already. I certainly cannot see any motion blur - at least, not any objectionable motion blur. No motion blur at all would look weird. Put it this way - most feature films are shot at 24p with a shutter of 1/48 (where they can control the lighting enough). I can't imagine you look at them an complain they're blurry. If there is Blur in your sample - it probably is due to noise. If there's that much noise, it's because the gain is very high. If the gain is that high, you'd do better to have the shutter at 1/24 so that the cam is able to expose to the same level without jacking up the gain. The added motion blur would look less objectionable than the noise.
Hence, I always shoot 25p/24p in Cine mode. I'd try it at least once, see what you thing. Manual Exposure too. Turn on Zebras at 100%. They will help with exposure setting. Bear in mind, on my HV20, the Zebras are maybe one or two 'manual exposure steps' optimistic - they zebra out when it's not quite clipped yet.
Just IMO, of course.