I don't mind buying a blem from a reputable company, but it has to be a significant savings, for some reason seems like the knives I like rarely show up in a blem version and if they do the price difference isn't enough to tempt me. For example a kershshaw 1660 damascus is $60 as a blem, but only $70 non-blem with warranty. I'll spend the extra $10 every time and twice on sunday. Now if that price dropped to $40 for a blem it would be a different story. To me if you are buying factory seconds with no warranty, the price should reflect it significantly.
However, I agree that I don't like the idea of no warranty. If these are cosmetic only issues (as I have no doubt they are, you'd have to be insane to sell knives with known functional defects) then there's no reason these knives should fail any more than their normal knives do. Considering it seems almost no one ever uses their knife warranty, it seems unlikely that it should represent anything but a tiny part of the price savings, but perhaps warranty is a much larger % of the selling price than I think.