Someone’s blood and life is a very big issue. It is not something that you can take into your own hands; it’s not something to be decided by mere opinion. It is something that must be established and known through textual sources. The text has to be there and it is what clarifies whether or not there is any opening or discussion to these issues. In addition, they are issues of capital punishment and governance. They are not issues of personal vendettas or grudges carried out by individuals. They have to be carried out by governmental bodies.
The Prophet (pbuh) had many roles in the society, and amongst those roles he ran a state, he was a judge, and he gave opinions to people according to the religion. If it was something he did as a ruler or a judge, then we have to leave it that way, and it should not be something that applies to everyone else’s personal behavior. The topic of this hadith is a topic of governance and so it does not really apply to Muslims in the West.