The blood is definitely a red herring-- no pun intended.
Yeah, I agree. They're capitalizing on the expectations of the fans who read the comics and thought Judith would die during this confrontation with the Governor.
While I don't think they actually would have shown the baby being shot on the show, I do think if they were going to kill her off it would be in a more significant scene than an off-camera death that is only hinted at with blood. They'd show whoever was holding her (probably Beth) get blown away with the baby in her arms and have Rick and Carl have to process that before being hastily forced to leave due to all the walkers coming in to the prison.