Here's how I do my version of the hanging scene. I enlighten the audience about it during my introduction before the show so it is not a total shock to them. I do not use Ketch, I use the devil instead. The routine is the traditional one where Punch tricks the one who is trying to hang him into demonstrating how to put his head in the noose. I do not hang him dead but have him chokingly submit and beg Punch to let him go.
Devil: Please let me go Mr. Punch, your choking me. I promise I'll leave the neighborhood forever and never get on the Long Island Expressway (insert whatever the local major traffic jam road is) again!
Punch: All right then off with you!
Punch lifts up the gallows pole with the devil's head still in the noose and drops them both below stage. No one has ever complained of my hanging the devil! - Not quite the original, and no dead puppets hanging over the playboard- but close enough for me to give my audiences some notion of the flavor of the old shows. - Prof. Frederick (Greenspan) -