Very nice, I have yet to actually smelt villagers down, but it appeared as if emerald was generated per damage not per dead villager, could one create something like the ritual of regeneration (or other mob regen effect) to keep the villagers alive? So instead of wanton slaughter you would just be perpetually melting them and then healing the damage? Also does anyone know if the damage caused by the smelter gets attributed to the player? I have had some issues in the past with villages/golems remembering ... things and making life there annoying.
I don't know too much about the Blood Magic mod, but it is possible to get emeralds out of just one villager. I was using Splash Potions of Healing II and if one is applied to the villager every time its damaged it should stay alive for as long as you can keep giving it potions. It's not the best method, but if you're dead set on using only one villager its one way do it.
Edit: I now think this is the worst thing I've done...68 potions and 1 villager gave me about 4 1/2 Emeralds
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