Islam, Prophet and Blasphemy

The problem today is that the Islamic religion which was based originally on purely oral communication meant specifically for an illiterate nation (Ummi Arabs) has spread all over the world having heaps of literature spread over centuries past. Naturally some contradictions crept in especially between the Quran and Hadees, which have become all the more conspicuous with the advent of Internet, which has virtually reduced the world to a global village.

For instance, the Quran says about the prophet:

“And We have sent you (O Muhammad) not but as a mercy for the ‘Alamin (mankind, jinn and all that exists).”
(The Holy Qur’an, Surah al-Anbiyaa. - (The Prophets) 21:107)

But a Hadees relates:

"Sunnan Abu-Dawud
Book 38, Number 4348:
Narrated Abdullah Ibn Abbas:
A blind man had a slave-mother (A slave-woman bearing children but not treated as a wife?) who used to abuse the Prophet (peace_be_upon_him) and disparage him. He forbade her but she did not stop. He rebuked her but she did not give up her habit. One night she began to slander the Prophet (peace_be_upon_him) and abuse him. So he took a dagger, placed it on her belly, pressed it, and killed her. A child who came between her legs was smeared with the blood that was there. When the morning came, the Prophet (peace_be_upon_him) was informed about it.
He assembled the people and said: I adjure by Allah the man who has done this action and I adjure him by my right to him that he should stand up. Jumping over the necks of the people and trembling the man stood up.
He sat before the Prophet (peace_be_upon_him) and said: Apostle of Allah! I am her master; she used to abuse you and disparage you. I forbade her, but she did not stop, and I rebuked her, but she did not abandon her habit. I have two sons like pearls from her, and she was my companion. Last night she began to abuse and disparage you. So I took a dagger, put it on her belly and pressed it till I killed her.
Thereupon the Prophet (peace_be_upon_him) said: Oh be witness, no retaliation is payable for her blood."

I wonder how can one reconcile the image of the prophet presented in Quran with the one presented in the above Hadees. Technically the Quran should prevail, but no one dares to say this as the compilation of Sunnan Abudawud, which belongs to Suha Sitta, (the six authentic compilations of Ahadees?) can also be described as the Quran ‘Gher matlu’ (Non-reciteable in prayer?). Instead they have enacted a law of blasphemy based most probably on the above hadees which stipulates the punishment of death for blasphemy when the Hadees actually can be interpreted to give any body (even a blind one) to act as a judge, jury and executioner, all in one, at the same time. And this is what is actually being practiced in the Pakland. Peoples some times get their personal enmities avenged by a false accusation of blasphemy against their enemies, which being a subjective and undefined concept can lend to any interpretation. In any case, there is no scope either in Quran or Hadees for taking out processions even the peaceful ones not to speak of the ones causing indiscriminate destruction. This is a purely new phenomenon caused by globalisation, which defies comprehension. We can only pray,” May God save Islam, the religion of peace, from the Mullah whose Deen is nothing but ’Deen-e-Fassaad".