To #1 scenario, I would say yes it does. In the Jurassic Park movies they seemed to censor all of the kills, on humans not the dinosaurs, by moving off screen slightly or moving the camera behind tree branches or bushes. It felt cheesy to me and almost ruined the movies for me.
I would also have to agree with scenario #2, even though its not pretty it should still be shown only if it has relevance to the story. Like the scene in Pulp Fiction where they jam that 5 inch needle in Uma Thurmans heart after she OD's from heroin to save her from dying, it was a pretty important scen and while graphic, it needed to be there.
I guess basically it comes down to this, only if it makes sense to the story should those things be shown.







