You guys are confusing 120Hz with interpolation technology. Interpolation technology (creating frames that are not there) requires 120Hz to operate, but they are exclusive of each other.
120Hz by itself decreases sample-and-hold, which will result in less motion blur. 120Hz TV's are always running at 120Hz.
Interpolation technology adds frames to try and remove judder that is inherent in film based material. This is the "soap opera" effect people talk about. Every manufacturer has a different name for their interpolation technology. For example, Samsung calls their interpolation technology "AMP". Interpolation can be turned on/off, unlike 120Hz which is always on.
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