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Im painting my Guard army and am having trouble choosing what scheme to go with. The blue is very traditional and actually easier to paint, but the grey just looks grimier and more intimidating.

How cinematic are you going? Vs. realistic. If you are going with a banner waving, marching forward for the glory of the Imperium, go with the blue. If you are going for the weatherd dirty troops, the grey would be better.

One problem with the grey is that it blends in with a lot of the other detail. The mini doesn't have a lot of "pop". Which while more realistic,looks a bit flat for a tabletop game.

Personally, I like the blue.

I will say that on a well decorated gaming table, colour helps discern troops from terrain.
I have some brown and green squads, and I'm forever leaving them in trees, buildings and shelters. Give your brain something to pick up on, even if it's just a flash of colour on the base.

Not fan of grey. Looks to blah. Make them awesome.

I'd go for the grey. I prefer gritty and grimey.