A DSLR is better for sports because of its optical viewfinder and it fast focus speed. Yes, you can get a blurred background with the kit lens is there is a wide separation of the subject from the background in terms of distance and space.
The Panasonic FZ-35 is a very capable super zoom camera. However, it it less adapted to fast action sports, without some real practice and a willingness to get out of the automatic mode.
I am happy to answer all of your questions.