It depends on how you interpret displacement as working.
I see it as sort of like inducing some sort of parallax error, as though you are fighting with your master eye closed. Glitterdusting the foe should just end up with you seeing a sparkling version of him displaced.
It makes more sense that Glitterdust would counter Blur, since that is an optical illusion that distorts the image of the subject, whereas Displacement is more a question of whether the subject is actually in the exact same spot or not. Glitterdust would help to negate the Blur effect, but if you're not there - you're still not there.
Faerie Fire also is subject to SR and doesn't have a chance to blind you like Glitterdust.
Also, many of the spells are hold-overs from earlier editions where these situations would never come up, and no one though about it when they did the copy/paste.
Displacement makes you appear a short distance away. Thus, even if you glitterdusted the foe, displacement would just make you see a displaced glitterdusted npc. You won't see a situation where an unglitterdusted image is seen a short distance away and a shimmering image denoting where he is.
Same logic for faerie fire. I don't think it will illuminate the target clearly enough to counter blur.
I'm uncomfortable with a 1st level spell negating a 3rd level spell. IMO faerie fire should reduce concealment by one step and nothing more. It's a basic spell effect not a catch-all counter.
I treat glitterdust a bit harshly as well. Technically it is a disabling attack and counterspell at 2nd level. That's strong enough to not have residual effects in my book. The duration is only on initial targets and a glitterdusted target can cast invisibility again to negate the glitterdust.