I used srestore for a VHS transfer I did of the old Legend of Sleepy Hollow starring Jeff Goldblum (available at cinemageddon) which had many of the same problems your VHS does.

You'll have to deinterlace the raw 29.97i footage to produce 59.94 fps progressive footage so that srestore can have more frames to work with. You lose half the resolution, but using some more advanced deinterlace methods can produce good results.

Anyway, a basic re-purposing of my old settings with your proposed settings looks to work pretty well on your 1600-frame Huffyuv-compressed capture. EDIT - I've updated the EZKeepGrain setting from 0.6 to 1.4 to reduce the amount of denoising going on in QTGMC.

AssumeTFF()
ConverttoYV12(interlaced=true)
QTGMC( "slow", TR2=1, SourceMatch=2, Lossless=2, Sharpness=0, EZKeepGrain=1.4 )
srestore(frate=23.976, omode=6, speed=-25, mode=2)

QTGMC can be extremely slow and endlessly tweakable but many in the doom9 avisynth usage forum consider it to be the best deinterlacer out there. The main limitation is that many of the settings require a YV12 color space but that should not be a problem for most.

None of these methods are perfect and some blending will remain, but I hope this helps!