You could use one of the "Yarn Over Decreases" on the decrease page, to create those holes near the top. It's not as perfectly neat as using YO for an increase, but it would work.
If you do it the other way, from the top down, you'll need to bind-off VERY loosely. For a decorative edge, with holes along it, I know I've seen a bind-off where you do yo, BO (basically making a single chain stitch), BO2 repeat. If you want to check out other ways of doing a good, loose bind-off, try doing a google search for ("toe-up socks" bind-off). Socks that are knit from the toe-up require a loose bind-off like that, and there are several methods out there.