Okay, you could make an argument that this was our first Quickie: the original is Poe's, and was pretty much
the inspiration for these one-shot gags. When cropping it down to size, though, the OAFE logo would have ended up over Satan's feet, so it was time for this "Director's Cut Special Edition." The image had to be flipped and re-lettered (because the lettering wasn't very good). At that point, adding in the blood just seemed like something funny to do.
Originally, I was afraid I had too much blood in the shot, and that it was taking the gag from "funny" to gimmicky or even gross. Instead of taking it out, I put in twice as much blood, bringing the funny back to what you see here.
It's the Tom & Jerry principle: back in the day when the writers were working on a new cartoon, they'd sit around the office and pitch ideas for what new terrible things should happen to the cat, with everyone trying to top the idea of last guy. Eventually they'd get to the point where someone would say "no, that's too over-the-top," and then that's the one they'd go with.