Spoonman,

I'll chime in with others who report that most steelhead bleeding profusely from the gills - as opposed to from near the gills - are goners. But most is not the same as all. Even some wounds to the gills are not fatal. Other wounds have a reasonable chance of healing, given favorable water conditions. Many of us have seen steelhead with healed over scars from seal bites.

If you thought the fish was fatally hooked and you kept it because it was legal to do so, I don't think that's a mistake on your part. Now you have more information from which to make a decision next time this happens. If it's any consolation, I had a smallish barbless dry fly stick a steelhead directly in a gill arch once. It was gushing blood heavily with every heart beat. I was certain that fish would die, and I kept it. It was legal to do so.

Sincerely,

Salmo g.