Happy Tree Friends :persecutioncomplex:
I think it’s creative and worth to try (if the op willing). It shows bold difference between protagonist and antagonist.
Would restrict your audience that would buy your game…American parents are getting worse but a lot of them still don’t approve of blood and gore in games like this. If you try it, really try not to overdo it.
What the hell have you been smoking ?
I’m all for violence, but have you looked at this game ?
hahaha, not smoking anything, just filled with imagination. 
If there were gore, as I said, you would have to make it a toggle-able option.
It actually wouldn’t even need to be gore, but just some recognition of a player being hit would give a bit of impact to the combat, since the video doesn’t showcase any game audio, he probably already has a hitting noise in there, which is good enough, but I think a visual indicator of a successful strike is also necessary, it could be a spark looking particle from a successful block, or it could be a particle puff (of red or brown/grey) just to indicate that a player was hit.
My suggestion was taking it to an extreme though. Because personally I think it would work well in contrast to the cute Chibi art style.
I still think that even blood drops being flicked across the ground would be a subtle, but effective indicator of a successful hit.
Either way, with, or without blood/gore the game looks awesome and I can’t wait to play it (nor can my girlfriend from her reaction when I showed it to her).
Taking this to the next level. Support us on IndieGogo!
Link added to the main post. 
Thanks.