x100 What am I doing wrong?

In this kind of situation you should always be using the highest aperture available so as much light is let in as possible, allowing faster shutter speeds to be used so blurriness is avoided.

The image is also clearly overexposed. It looks like you did this intentionally with the exposure compensation knob. I often find that in low light my X-E1 chooses an excessive exposure, which isn't necessarily a bad thing if you do post-processing (simply adjust exposure down again in your editor) but if you want out-of-camera JPEGs to look more or less ready then you need to use the exposure knob intelligently and notice when it's out of whack.