Yes and no. We do hallucinate both temporal and spatial content from any scene we perceive but there's also a big part of the brain which causes you to ignore missing information. For example during a saccade (rapid eye movement) you're basically blind, the brain just edits out of your perceptual stream the part where the world is an incomprehensible blur.
Expanding in this - if you've ever glanced at a ticking clock, and the second hand seemed frozen for a moment, that was the brain backfilling the gap (after the fact!) left by the saccade.
I was aware of the phenomenon (from personal experience) but not fo the cause, but there was a post here relatively recently that went into the details. Apologies that I can't now find it.
Our eyes and brain doesn't see frames, they see changes in light intensity. There are cameras that try to mimic this behavior, they're called event cameras. I think they're going to see much more use in robotics in the future, but at the moment they're mainly (or only) used in research.
Event cameras are certainly interesting, but they have their own set of challenges. I do not believe they’re a better choice in any general sense, but can certainly deliver some impressive performance.