I think he still is blind, he's just not wearing the blindfold.

His eyes in both his alt baby and alt damage concept seem to be that really light blue, missing pupils.
Edit: I got a little chuckle over the challenge "Isn't This Marvelous," where you just tap the screen to make Johnny fight.

I just brought that up along with Human Sektor and MKII Ermac, not to mention all the other inconsistent ninja suits, while the suits don't affect in their powers. I'm not quite certain about it – we should see Kenshi's alt in Nekropolis soon – but by looking at the picture, I guess it's 50%-50%. The simplified graphics would at least show the eyes completely white without any hues though now they seem to have a lot detail. Gotta wait for the Nekropolis screenshots then.
As for Kabal, the gas mask breaks in the costume damage to almost non-existent (there's something left on the left side) yet this broken mask works as usual. The comparison of Sento and the gas mask isn't quite fair either considering Sento is a moving object that hits the opponent whereas the gas mask is an immovable, breakable part of Kabal's head.
The gas projectile concern is valid however. Still, consistency doesn't really follow the gameplay – how do you explain Kitana's Fan Lift for instance when she doesn't carry those fans anywhere? Because they're not part of her costume? Magic? The healthy Kabal inclusion would be controversial indeed, but so have many other add-ons been that.

"Look ma, I'm wearing no mask on this side!"

His alternate baby model visible in the Nekropolis has the blue/white eyes with no pupils, as does his alt damage concept, though the concepts can vary somewhat from the actual model.

I guess Kenshi alt is blind then. He was just one of my examples tho.