Perception-distortion trade-off is well-understood for single-image super-resolution. However, its extension to video super-resolution (VSR) is not straightforward, since popular perceptual measures only evaluate naturalness of spatial textures and do not take naturalness of flow (temporal coherence) into account. To this effect, we propose a new measure of spatio-temporal perceptual video quality emphasizing naturalness of optical flow via the perceptual straightness hypothesis (PSH) for meaningful spatio-temporal perception-distortion trade-off. We also propose a new architecture for perceptual VSR (PSVR) to explicitly enforce naturalness of flow to achieve realistic spatio-temporal perception-distortion trade-off according to the proposed measures. Experimental results with PVSR support the hypothesis that a meaningful perception-distortion tradeoff for video should account for the naturalness of motion in addition to naturalness of texture.