Originally Posted by Miasma
I don't think the anime as we know it would work well with blood in it, seeing how comedic, and unrealistic it tends to be. That said, I would love to see a more serious anime come out that deals with the darker side of Pokémon, and something like that could certainly have blood in it.
It's silly to think that what are basically a bunch of superpowered animals beating the life out each other wouldn't bleed when they're injured, but the show's target market simply doesn't allow it.
To answer the actual question though, yes I would certainly still watch it.
Get a manga and read, damnit. xD