yeah, I posted a question about that when I was there, but nobody responded, so I killed them all....Just make sure that you get the perk to make blood packs +20, even though that isn't really saying a whole lot!!
In addition to the above comments, going forward with this quest (like many of the side quests) sort of depends on where you are at in your character build and your weaps loadout. Plus your mindset in playing this game in the first place. If you've been roaming for awhile and have leveled up your char stats and equipment to maybe level 8 or above, there isn't that much in terms of an equipment bonus/new stuff. But along the way there is lots of stuff for the custom build weaps and a solid amount of total exp pts to obtain. The level design is good and there are several ways to complete the quest so that's interesting. But the real reason to complete this quest is just that it is of Oblivion level quality, nothing fancy, but a solid side quest with good dialogue from the peeps you meet and an interesting twist at the end. To me, that is what FO3 is all about, not just the physical equipment/pts awards/rewards, but actually going through side quests because *gasp* the story is interesting! If you just want to go and blow, which is totally OK in my book if that's what you want, you could skip this. But if you want the total FO3 experience, this is another slice not to be missed IMHO.