Meh, to each their own. I can see it from one POV, as it kinda represents real life - not always in focus, if you will.
Still, my dogs "make" things in the back yard twice a day. Wrapping one up and giving it to someone doesn't really make it a gift now, does it...?
I'm pretty sure if you showed some of those images to the average person, they'd ask if you knew how to use a camera. But those shots aren't for every person now are they? I have a few shots form over the years when the blur just made the difference. It captured a mood, an action or in some way simply added a dynamic that wasn't present otherwise.
The real question is this:
When she won the award, did she go to a bar and celebrate telling people that someone gave her $500,000 for makign out of focus photos? Because if she did, and can laugh at what many will feel is absurd, then she's got a great head on her shoulders. Doesn't change her art, as that's from her mind's eye, but knowing you're in the minority and being able to chuckle at yourself for finding a niche, that's priceless.