I managed to get a blob and create a URL for it which I put in a img tag src attribute to show the image like this:
<img class="gwt-Image" data-field="image" src="blob:http%3A//
127.0.0.1%3A8888/757c3c87-de5c-4c54-897e-9d043bc2895c">
My question would be how would I upload this blob via GWT FileUpload with com.google.gwt.user.client.ui.FormPanel?
Also the com.google.gwt.user.client.ui.FileUpload does not have a setFilename method to programatically set the filename as oppose to selecting via File/Window box.
So, it seems its like impossible to do this with GWT, I've seen pure Javascript solution.