Really, I feel that with the surplus of 'blood and gore' games out there, Mortal Kombat has lost it's niche. It used to be a one of a kind game. It was a fighter that showed the blood and gore to a level rarely seen in games.
These days though, it's "just another fighter". I think a new direction is a good thing for Mortal Kombat, because as they said, their sales have been going down with each game, and not for a lack of additions to the game (weapons, fighting stances, characters, fatalities, etc have all been added).
I don't know if this kind of thing is what MK ultimately needs, but I won't classify as a bad thing until I see the final product, and how it compares to previous games. Maybe it'll do the series some good to lose the M rating, and go down to Teen? I know it seems backwards, but losing what makes them unique could be a good change.