This is the problem with exegesis. As I said before there is a cultural context to understand and within that culture they have a literary aspect to writing. Short of writing a book, I'll explain a little bit of an issue that is going on here:
Deuteronomy is a "re-writing" of the commands given by God in Exodus. Often when one is quoting Deuteronomy, they are trying to find very "strict" rules to show how mean God really is. This is not the case. In Exodus, the Israelites are freed from slavery in Egypt by God. He then enters into covenant with them and says to be in covenant they must follow these statutes. These statues are NOT a means of worship themselves but rather given by God as
the easiest and most effective way of convening with God. God gives them a way to be in relationship with Him. Now whether or not you agree with and apply that in your own spiritual life is irrelevant, we are talking about the literature here and what the literature says. The literature says these rules are the most effective way of worshiping God.
Now the reason this is important is because God has called Israel to be holy, or more literally separated, or even more understandably so for our time, different. God wants Israel NOT to be like everyone else. An issue occurring at the time was the cult aspect of blood drinking and simply the counter move to that was to not drink blood. Keep in mind the bible has a lot to do with property and territories and who belongs to who. Israel, while in the presence of a Holy God, was not to be associated with what we could call modern day terrorists. Again, not all of the bible is prescribing, it is some account of history.
8 “You shall not do according to all that we are doing here today, everyone doing whatever is right in his own eyes, 9 for you have not as yet come to the rest and to the inheritance that the Lord your God is giving you. 10 But when you go over the Jordan and live in the land that the Lord your God is giving you to inherit, and when he gives you rest from all your enemies around, so that you live in safety,
Land based issues here. God is talking about safety and to engage in blood drinking it may be seen as ritualistic and they may get a bit of trouble.
I'm gonna stop there hoping I've made a general clearance to it. Now here's a bit more to be thrown at you concerning the bible and blood drinking.
Blood is seen as the "life." When God was coming through Egypt and taking souls and plagues and all sorts of crazy shit, those that put blood on their doors were protected. They were given life. The new testament talks about Jesus' blood being the thing that saves us, and nothing else. In fact, Christ himself says at the last supper: in John 6:54
54 he who eats my flesh and drinks my blood has eternal life
Being literal? Are we supposed to be cannibals to live eternally with God? No, it is just showing the perspective they held blood in and how Jesus turned their world upside down from what they
thought they knew about scripture and worshiping God.
I still see no issue with drinking blood as a food. I think God would disapprove if you used the blood to worship evil spirits/demons/beings and have them cause others hurt through your ritual. As a means of sustenance, I think the God of the bible has no issue.
On that note, the God of the bible probably cares less about diet than we would expect him to, but it's important to us and who knows if it is that important for an afterlife. I personally feel more spiritual eating healthy, natural, non-agricultural foods. Maybe that's why the religious aspect of religion was so perverse and twisted: grain consumption caused unnatural desires.
I'm not saying the bible represents a perfect picture of God since I think man did have some influence on it, being all agriculturalized at the time. They promote grain and property (including people/wives/slaves(workers)) and have a poor balance for natural human desires, like promiscuity or sharing (little children always share until their parents tell them not to give everything away, with limited access comes greed) or even tasting everything like babies do to understand their world.