The blurring is me experimenting with depth of field.
But I am curious why you're having odd issues with jittering engines and huge spins. The camera is too slow because you turned your mouse sensitivity down, the real error is that the ship is spinning too fast. The ships sometimes go a bit splatty when slowing that last 0.1 m/s, but I've never seen them fire up the main engines... I wonder if your framerate is really bad, maybe? I dunno, I'll keep my eye open and think about it.