If they're aware of the Super Saiyan God, then I think it's fair to assume they lived to know Yamoshi. Remember the "Evil Saiyans" that Yamoshi and his friends tried to fight, but lost? U7's modern saiyans are pretty much descended from these evil saiyans, and it would make sense that Giblet would hold a massive grudge, since they killed Yamoshi, the God of Saiyans. As for the "Blood of the Defeated", I have no idea. Is it possible to refer to the descendants of Yamoshi's companions, the not-evil Saiyans that were ultimately defeated?
The Tournament was engineered by the Mastermind. Since the beginning he already had Shin as a hostage. They were clearly prepared before going into action. Also, I believe it's practically a given that Giblet is only working for him, and not a co-conspirator. The Mastermind planned everything in order to avoid Beerus' intervention, and that included Son Goku and Vegeta, who posed the biggest threat of all. They can't act because if they do, Beerus dies. And Beerus does not want to die. He immediately went to fetch both warriors to guarantee their non-interference. If they could, there was no need for Shallot as a proxy.Giblet has proven himself to be nothing more than a edgy version of Shallot and Son Goku would have been able to stop the Mastermind if Son Goku hadn't wasted any time and acted right as soon as he would have felt countless Ki signatures he had been familiar with starting to appear all over the Planet Earth. As in Son Goku transforming into his long-since mastered Super Saiyan Blue form and then using all of his power right from the start by basically one-shotting every revived male, female, and especially asexual villain he would be able to sense. Which would have included Giblet and the Mastermind as the both of them would have been much weaker than Son Goku at this point since Giblet and the Mastermind did seem to be exploiting the Tournament of Time in order to have made themselves stronger.