Sara, this is a good question. We have no idea about the feng shui implications, as we do not practice feng shui - at least in the kitchen. Any more knowledgeable readers have the scoop on that?
On the more practical side, we think that the question of blades up or down really depends on the placement of your knife strip and your height. I am short, so if I install a knife strip in my new kitchen, chances are that it will be placed near the counter and I will hang my blades facing up so I can easily lean in and grab the handles. If I were taller I might hang them facing down.
Readers chime in - do you have a knife strip, and if so, do you hang your knives up or down ?