YES!!
I recall Ron Bass working an angle with Beefcake. Bass busted Beefcake opened with a knuckleduster, Brutus got color, and WWF replayed the footage with the dreaded "X" and sometimes also in black and white.
Cheesy, but effective to a degree.
Even as a kid, though, I knew why they did it, but I never understood why because I had a PWI from a couple of years earlier with Dusty Rhodes covered in blood on the cover.