I've never had a problem using dielectric grease on connectors. Dielectric grease does insulate. The idea is, the grease is forced away and displaced at the actual metal to metal contact to make electrical connection and doesn't interfere with conducting at that point. The remaining grease fills any voids and prevents dirt/water/debri from getting into the connector, that might short out the connector. Bulb grease does the same thing. Both, make for a more reliable connection, because it does NOT interfere with the actual connection, but it displaced any conductive contaminates around the connection with an insulative layer that fills any voids in the connection where conductive matter could penetrate and short the connection.
The best way to check if a connector is making good connection is to use a multi-meter and check resistance by probing either side of the connection. I've gotten 0 ohms and/or the Continuity buzz from the multi-meter checking circuits in with connectors totally filled to overflowing with dielectric grease, as well, checking adjacent circuits in the connector, gave infinite resistance between them, i.e. no shorting what so ever in the connector. I've also found shorting in connectors that had oil in them, and checked good once the oil was cleaned out of the connector. So having something in the connector that would fight contaminants from invading the connector would only make it more reliable.
The blower motor is a very high power/current device in your car. It shouldn't have any signs of overheating or arcing, but its pretty common. If it was me, I would have probably done the same thing, and keep an eye on that blower motor. It starts acting weird, any evidence of smoke/heat/burning smell, I'd shut it down and replace it. The resister block, that the connector plugs into, is suppose to have overheat/current draw protection, a device in that block is suppose to blow if the motor draws too much current or gets way to hot.
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Last edited by Mongo; 03-12-2015 at 08:32 AM.