I'd pay to see a version of Avatar where Aang succumbs to revenge after finding out the Air Nomads were wiped out and...

I'd prefer a different story doing that but following a different Avatar
It's been established that not every Avatar is afraid of killing, only air nomads have this hang up on it

Would Sokka and Katara still stick by his side if he went down this path or would they try to stop him?

They didn't with Jet, but Aang is the avatar so it's hard to say.

The Air Nomad genocide was impossible and stupid.
1. The Nomads travel all over the world, for you to be able to kill them all you would have to be able to strike at every part of the world at once. If the Fire Nation could do that the war should've ended on day one.
2. The Air Nomads can fly and have flying mounts. Even assuming for some stupid reason all of the Air NOMADS would happen to be in one place at one time especially when they've known for years that a war is coming and they're a huge target because the Avatar is a Air Nomad, once any kind of attack happens it becomes impossible to stop all of them from escaping.
3. Other than the Avatar the Air Nomads were pacifists who were no threat to the Fire Nation. Killing all of the Air Nomads serves no purpose.
4. Even if the Fire Nation doesn't know a thing about Aang they know when Roku died, so at most they'd have to only kill all of the Air Nomad twelve year olds.
5. Of course the idea that the Fire Nation didn't know about Aang is unlikely, he made trips all over the world including to the Fire Nation. A random Air Nomad child isn't going to have many people talking about him, however the only Air Nomad child with the tattoos of Airbending mastery will be talked about.
6. After Aang disappeared the Air Nomads are going to be searching all over the world to find him. The Fire Nation would find out shortly that they've lost the Avatar, making the attack on the Nomads largely pointless. You could still launch the attack to draw out the Avatar but you'd have no reason to kill every last Air Nomad. In fact you'd probably want to capture as many as you can so you could use them as bait.

7. Starting the war with a complete genocide has a lot of problems. It completely destroys the entire propaganda point behind the war in the first place, namely that the war was about spreading the Fire Nation's prosperity. Words have power, if you start a war because of Lebensraum or Manifest Destiny it's one thing and if you start a war because it's the Fire Man's Burden then it's another. The reasons you've given for the war and the consequences of the war will effect the morale of your nation, have you mentally prepared your citizens to commit genocide?
Zuko when he confronted his father said this "Growing up, we were taught that the Fire Nation was the greatest civilization in history. And somehow, the War was our way of sharing our greatness with the rest of the world. What an amazing lie that was. The people of the world are terrified by the Fire Nation. They don't see our greatness. They hate us! And we deserve it!" Which shows that even a hundred years after the start of the war kids were still being taught the war was about spreading civilization to other nations. When a person genuinely believes that and is confronted with the fact that it's a lie it damages their morale and their patriotism.
8. The Airbenders were a tremendous resource and no colonial power would destroy them all for no reason.
9. You've just started the war by genociding a nation of pacifists. You have effectively given your enemies infinite propaganda fuel and no reason to ever surrender to you.

Also I've always found it pathetic that in LoK they found more flying bison but every last airbender was killed. So ten ton dumb animals can hide from the Fire Nation but humans can't? Airbenders could just fly to Ba Sing Se and be safe from the Fire Nation.

Not gonna go through your points one by one but I'll tell you the canon reasons behind some of your questions. The Fire Nation version of history is that the brave fire nation army defeated the air nomad army fair and square and they didn't surrender hence why they're all dead. If the other nations would just give in and fall under Fire Nation territory then Fire Nation prosperity would be shared with the world. Ozai wanted to genocide the Earth Kingdom but his reason was "then from the ashes we will build anew and the Earth Kingdom will know the joys of becoming apart of the Fire Nation." So essentially manifest destiny in that it's basically propagandised land grab genocides.

They lured out the travelling air nomads after killing everyone at the temples by setting traps with air nomad artefacts leading air nomad travellers to follow the trail of where it came from until eventually they seek out their brethren only to be ambushed and killed. The other nations are much more isolated and thus didn't really give a shit.

The biggest plot hole to me is how the fuck did they make it to all the temples without flying devices.

Based Aang

Pelinal whitestrake would be proud

The canon reason is that Bryke were just throwing ideas at the wall when they were writing Avatar.

Then in the final epsoide, he confesses that he always loved katara and never wants her to find another man

And then only proceeds to kill 80% percent of the Fire nation

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That's true, thankfully there was a team of writers to tard wrangle them into making a good show.