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Easy to figure out when looking back into history and past times where that was accepted even as means to sort out honour issues or bar fights.

I have no doubt that it can be a deterrent for some. The question is more about whether this is the optimal strategy for addressing the problem.

Not a lot of people, because if you went and murdered someone, their family (if they have any) would presumably just murder you in turn.

That would make it a lot of people, then. Because now your family murders their family and their family murders your family.

Yep, and the understandable fear/worry/expectation/knowledge of that possibility happening, is part of the reason that (usually) stops that cycle from starting in the first place.

The greater deterrent is knowing you will be caught.