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Technically, what is the difference between blending and interpolation?
Suppose you have 3 pixels on successive lines and the same x offset:
a
b
c
If you decide that pixel b is combed, and you replace it with (0.5*a+0.5*c) that is (linear) interpolation. If you replace it with (0.25*a+0.5*b+0.25*c), that is blending. Note that when interpolating, the even lines are passed through and the odd lines are calculated as described. For blending, every line is calculated. Blending thus produces a blend of the two fields while interpolation uses data from one field only. That is why people say that blending causes "ghosting". You can eliminate the ghosting by setting blend=false. Also note that while interpolation can be calculated in place, blending cannot. Interpolation is a little faster.
Blending blends the 2 fields together, and interpolation creates a full frame using only one of the fields as a source. Blending produces ghosting/double images, and interpolation throws out half the resolution and creates jaggies/aliasing. There are better deinterlacers available.