He was at Blur's glasto show I believe AND their Hyde Park show, he was also at their 1994 show at Mile End and of course Pulp supported Blur on tour back in the day as well. I think what the 2 bands show for each other is a bit of mutual respect.
When you consider the kind artists Jarvis often champions in interviews when asked about his influences and the acts he collaborates with then you can see that Blur would not really fit in with that kind of taste.
Also if you remember around about the time when this video was taken Damon Albarn had been doing a bit of slagging himself concerning Running The World. It's not really a big deal is it? All bands who realised albums between 1994 and 1996 don't have to live in a big house together.
I think there's always been a bit of ambivalence in the Pulp/Blur relationship. They'd obviously known each other for years, going right back to the Paris show in 1991 (which Russell pinpoints as the beginning of Britpop), and stuff like Alex and Damon hopping on their private jet to Iceland in 1996 suggests that relationships were generally cordial. Musically there was a degree of mutual respect bordering on jealousy - Russell told me once that when Pulp first heard Girls and Boys they were kicking themselves for not daring to be quite that cheesy with their own disco tunes. I believe the inclusion of Death Comes to Town, Love Is Blind and I Want You at the Drury Lane concert (with Jarvis pointing out that those songs were from 1987, 1989 and 1984 respecively) was intended to make some sort of point about how Pulp were doing certain things for years before Blur took the blueprint and cleaned up. (Personally I think they're way off the mark on that one, but never mind.) I'm sure Jarvis has also made some low key comments suggesting that Common People and Mile End were written partly in response to Blur's elevation / glamourising of a certain kind of working class lifestyle circa Parklife.
__________________
"Yes I saw her in the chip shop / so I said get yer top off"