Disney does it all the time with their Faerie stories. There is very little violence in those stories. Of course who wants to read Disney books after they hit puberty? People who read genre fiction expect certain things. Just because it is in a fantasy setting doesn't really mean it is in the fantasy genre. Look at Slaughter House Five, it always makes its way onto the greatest scfi ever list but it really shouldn't. It is a great book without a doubt but it really isn't genre fiction aliens or no aliens.

I would read a fantasy book with no violence if it made sense and the story was good enough but if I just want to read none violent books there are hundreds of thousands to choose from and a lot that are better written than almost all of the fantasy so what would be the point?