The line should stay.  It is funny and it is true.  I've observed many Punch and Judy shows and it does feature such horrors as outlined and also frequently amuses little kids.  But do the horrors amuse?  Kind of hard to see what else there is in the show really.  When I was a kid, I always found it funny because of them.  It's been long historically established that comedy and tragedy are seperated by a very fine line.  As Steve Coogan said, "the best comedy is when you don't know whether to laugh or cry". Philip