So, just in case the item reworks haven't been seen on the site, here's what it looks like now:
Bloodforge
Cost: 2850
+75 Physical Power
+15% Physical Lifesteal
PASSIVE: Killing an enemy god forges a shield from their blood with health equal to 200 + 10 per Player Level for 20s. While the Blood Shield is active you gain +20% movement speed.
Now, here's the best part of this: The Assassin, specifically the basic-attack based assassin, is now a viable solo lane choice. While they were comfort picks for many players in solo lanes and counter-picks as well, the changes to Bloodforge mean that solo lane picks like Bakasura or Kali (to a lesser extent, thanks to Destruction) or any other squishy-ish physical character is no longer quite such a single-target teamfighter the way Loki has always been considered, but they can stay around thanks to the 400 health from a kill. For someone as squishy as a Bakasura (even a Baka who's built Bulwark of Hope and Midgardian Mail), the 400 extra health--that resets on every kill--is a real bonus.
Now, what that means for characters like Bastet and Mercury, who often suffer from a lack of survivability in teamfights, is that after they get a kill, they're able to reset and charge right back in. (In Mercury's case, the extra passive from the Blood Shield is even more power.) And while I don't think by any means that this change will spell the end of the warrior's solo lane dominance, I think that we'll see many of the more inventive solo laners (like Xaliea on PDG or last season's CycloneSpin) will definitely be experimenting with this new item.
It's clearly meant for assassin type champions becasue they proc the passive easily. However I even see some hunters pick this up just because of the extra power. It does slow them down a bit (cause 800-1100 gold is a lot) however they can make use of the passive and it provides as much lifesteal as Asi normally does. And well IMO the shield is stronger then having more lifeteal for 5 sec.
I even see ability based assassins pick it up for the power and shield. and well for most after they ran out of spells there basic do hurt a bit so they can make a bit use out of the lifesteal. However most assassins pick it up as 4th item or something (or at least I would)
I don't really see Bloodforge as a pick up for lifesteal anymore, but more for an offensive bulwark or power pick up. The lifesteal is a nice addition for AA focussed assassins. Also compared to the other lifesteal items it doesn't have a way to boost the lifesteal ( Asi Devourer's Gauntlet and Soul Eater all boost it with the passive).
It's probably not gonna solve every problem however it's gonna be a big item for assassins.
Like I said it's expensive. however they can also choose to switch Asi (or another tier 2 item) later in the game.
Anyways, I agree with your comments on it for the most part, especially regarding Bakasura, I can see this being a huge boon to him late game. However, my main issue that I take with this version of Bloodforge is its important life steal stat. While its power and passive are both impressive, I'm not sure it's worthwhile paying a steep 2850g unless you can get something out of the lifesteal (otherwise why not just grab something like Bulwark of Hope or Mail of Renewal?). This creates a problem to a degree. Most gods benefit the most from lifesteal during the laning or jungling phase for its sustain, but it's very unlikely that any god will get this item early (as its teamfight potential is its main draw). Thus, the lifesteal comes into play only in late game teamfights. AA focused gods like Bakasura, Kali and to some extent Mercury can make use of this lifesteal, but ability based gods like Bastet, Hun Batz and Serqet won't see much benefit from it.
To be fair, there are more gods that can use the lifesteal late game than not, (others including Arachne, Nemesis and Awilix to an extent) but it doesn't solve EVERY assassin's problems.