I believe it does.
Blessed, basically means, “happy”. It is used in terms of “receiving grace from God”. However, it is confusing to me when it is used with reference to God, “blessed be God”.
Psalm 72:18 Blessed be the LORD God, the God of Israel
I think, in that case, it means that God is worthy of all praise by man.
Anyway, back to St. Elizabeth. She is exclaiming that Mary has received an awesome grace, which is unheard of in human history. She is carrying God in her womb.
Luke 1:41 When Elizabeth heard Mary’s greeting, the infant leaped in her womb, and Elizabeth, filled with the holy Spirit, 42 cried out in a loud voice and said, “Most blessed are you among women, and blessed is the fruit of your womb. 43 And how does this happen to me, that the mother of my Lord should come to me?
As a result, St. Elizabeth realizes what that makes Mary, " mother of my Lord" and thus, Queen of Heaven."
So, yes, it is veneration.