Nope. You can pretty easily blur faces in any version of Premiere Elements, as long as you understand how the Track Matte works.
The process is a bit long for me to explain in a forum post, but I do explain it in the sample chapter of my special effects book for Premiere Elements.
The book is being updated for version 11, but the principles are still the same. You put two copies of a clip on your timeline, one directly above another. Then you blur the bottom one and place a Track Matte on the upper the punch a hole or holes through the upper track where you want the blur to appear. Once this hole is keyframed to follow the face around the frame, you're done.
Along with Steve's suggestion, you might want to take a look at this article: http://forums.adobe.com/message/4575874#4575874
The concept in it is to "highlight" a moving object, but that "highlight" can be almost anything, such as a heavy Blur, a Moasic, almost anything.
The beauty of Keyframing is that one only has to establish a few points, and then Frames ("tweens" in animation parlance) will be automatically created. Also, they are easily tweaked, if the tweens get off a bit.
So how long before the book is updated?
Which book do I need to buy?
The latter looks like the kind of instruction manual that should have (at least used to) be included with the purchase of the software.
The first book (Cool Tricks & Hot Tips) is my special effects book.
I'm a bit backed up with my writing now -- but I'm hoping to have it updated some time this spring.
Thanks for your interest!