I don't know the first thing about fencing. But that image doesn't look like a stab to me. It doesn't look like it's aimed at the penis in particular either. (But again I know nothing of the sport.) (Edit: I agree that if I had a sword, the crotch could be considered for an attack, but I'd go for the hip joints mostly.)
What I do know is that if I have a sharp stick, I will not aim it at your penis. The main goal in a fight is to incapacitate. So an attack on the penis even if successful would be rather wasted. Bleeding from the crotch doesn't make you any less dangerous in the short term.
You will die from bleeding from the groin. This also makes it so your opponent cannot reproduce.
The pain alone from a hit to the groin is also enough to make somebody vomit or straight out pass out. I'm not certain if that effect is the same with cutting as it is with punches and kicks...
Yes they might do so after the fight. During the fight you don't really know how they will react to it. In a lot of cases they will not notice the injury and continue to fight you.
What I do know is that if I have a sharp stick, I will not aim it at your penis. The main goal in a fight is to incapacitate. So an attack on the penis even if successful would be rather wasted. Bleeding from the crotch doesn't make you any less dangerous in the short term.