1) Death penalty is not the absolute and all effective
deterrence. The court trial and judges or jury decision determine
if the accused is guilty and what punishment is necessary. If the
religious court in Indonesia can declared a convicted terrorist
"infidel" or whatever terms that make him a religious outcast, for
killing innocent ppl, including those of the same religion, I am
sure this will be much more effective than death penalty. But, the
process of trials and judging must be effective, before the
sentence is given.
To these terrorists, their motive is religious and their religious
status is more important than their life. But then, will you fight
for their religious rights?? 
2)"vengeance" is when victims or their relatives take the law in
their own hand. "punishment they deserve" include life
imprisonment, does it displace the idea of vengeance??
Argue for the sake of argument may bring victory but will it bring
better life to the people, or just the criminals? 