I'm in the "it feels odd" camp. My boyfriend keeps telling me it's just because I'm not used to it, but I spent nearly 3 hours with the Hobbit and, although it wasn't as distracting as the first hour, I could still see the fast-forward effect with all the characters. I agree it makes everything look crisper and sharper than ever, but the motion is still off. I'm not fixed on the 24 FPS film look, although it does prep my brain for a specific experience. Documentaries do seem more real when there's more detail and with more fluid movement (like in behind the scenes footage), but that's just it. It makes the movie feel like a weird documentary. The detail and sometimes the motion want my brain to think it's more real, but lighting, composition, effects, etc, want be to think it's not. It's a strange congnitive dissonance that just doesn't feel right, and yes, ends up seeming fake. I've had to disable such upscaling of frames on my TV because it was really ruining my enjoymnet of movies. I'm not sure the push for "life-like" realism and clarity adds much more to film than "realism" in games, which so far hasn't made them overall better, just more resource-hugging.
Somewhere in the thread someone wrote a little bit that seems pretty relevant (sorry for not quoating you, I'm just too lazy to go back and find that specific post). Psychologically it seems the brain is more drawn into the experience when it does the motion interpolation, not when it's fed the pre-procesed image. I think the gaps it fills up by itself contribute to the movie watching experience much like imagination does in book-reading.