Yes, the net force would decrease but not for the reason you are suggesting.
Consider the pulley to be frictionless. It's not the pulley that is decreasing the force on the block, but the weight of the second block that is added. The weight of the block causes a tension in the rope, and the rope thus pulls up on the first block, decreasing the net force on the first block. All the pulley really does is change the direction of the tension force so it pulls up on the block. This is why the pulley doesn't factor into the force equation, since it doesn't create any new forces.
(Of course, in reality, there is some friction in the pulley which will decrease the net force on the block, but it is not the primary cause of the decrease.)
Does this make sense? I suggest drawing a force/free-body diagram of the situation. It may help you visualize what's happening.