Honestly, I think the blood and gore of the dead bodies in Daggerfall is a little extreme. I'm not at all bothered by it or anything, but for the general audience, eh, especially since Skyrim is WAY more graphically advanced than Daggerfall, I think it's best to leave it a little less...well...graphic.
That said, I definitely want a pool of blood after a kill. 99% of the kills in the past game were the result of some severe physical trauma that would cause bloodshed. Even in those rare situations of poison, I could still make the excuse that it caused such severe internal bleeding that it came out of their mouth or something.
As far as an option to turn it on or off, sure, why not. Options are nice.
Oh, and as far as disposing of the bodies, I say have them disappear in time UNLESS they have a quest item, AND offer the option to dispose of them immediately ala Morrowind.