You might get better results if in step 2, you would use Dione TV (or DV), instead of Gaia. it will be cleaner, faster and bit sharper and less blur.
I already tried your method and I found the use of the Dione AI (TV / DV) as the second step yields better results then using Gaia.
but that depends on your source video. sometimes the more blur is better as blurriness covers up scratches and over screwups of the original video.
Also there is a very good chance you might find that de-interlacing with QTGMC (using Hybrid) your “vob” file 1st and then doing step 1 & 2 with the de-interlaced file would give you better results as apposed doing it directly on the “vob” file.
