Actually, there is only one type of Baptism - water Baptism.
Baptism of blood/desire says that the grace of water Baptism is imparted (by the mercy and justice of God) even thought the recipient was unable to receive the Sacrament directly. It is still the grace of water Baptism - only it’s imparted without the normal celebration of the Sacrament.
Yes. The lesson here is that God is not bound to bestow sactifying grace soley by means of Baptism. That is one reason why we may legitimately hope for the salvation of unbaptized infants, even though right now, we can’t know one way or the other.
WHY would anyone think an infant would need to be damned?
The question legitimately arises out of (a) the necessity of Baptism, and (b) our uncertainty regarding the fate of those who die without Baptism and who lack the use of reason. This would include not only infants but also the mentally handicapped or mentally ill who have never had the use of reason and therefore lack the full use of free will.
Why is the use of reason important? The Church teaches that salvation is possible for those who, never having heard the Gospel, nevertheless sincerely seek the truth and follow it according to the lights they are given (CCC at 1260). This is a sort of Baptism of desire, since such persons would have desired baptism explicitly if they had known its necessity. To the extent these people are virtuous and seek the truth, it is through an act of their free will.
A person without free will, on the other hand, does not exercise virtue, just as he does not exercise vice. He
can’t. Thus, all things being equal, there is nothing meritorious in his refraining from vice, because he lacks the ability to indulge in it in the first place. And if he happens to do something good, there is (all things being equal) nothing meritorious in that either, because he can’t form the intent to do good things, and the good thing he did was not a free act of his will. (Similarly, in people who do have the full use of reason and free will, we can see that merely to refrain from doing evil is not in itself necessarily virtuous, since it may be that the only reason the person refrains from doing evil is that he lacks ability or opportunity.)
So at the root of the problem of infants who die without Baptism is precisely the very thing that renders them guiltless of personal (as opposed to original) sin: their lack of reason and free will. Because this same lack of reason makes them just as incapable of practicing virtue, and the mere failure to not do evil is not in itself virtuous. It may be that God has a way of overcoming this problem – He certainly could if He willed it, and I certainly entertain the hope that He does – but we just don’t know.
WHY would you want to believe in infant damnation?
I don’t GET IT!
The truth is the truth, whether we want to believe it or not. We ought never to believe something that’s
not true, no matter how painful it is, because we are bound to seek the truth and live the truth. We don’t get to construct our own truths. It happens that, when it comes to this issue, we don’t know what the truth is. We can only trust in the mercy of God, Who loves the unbaptized babies infinitely more than we do.