No, you are wrong about this hadith brother.
I mean, this hadith is saheeh...no doubt about that...but it doesn't forbid you to argue. This speaks about people who have the nasty habit of arguing for the sake of arguing. people who try to defend their opinion at all costs...people who see arguing as a contest...winning or losing. That should not be the purpose of arguing. The purpose is to enlighten each other without losing your respect....to correct each other without offending. That can never be a bad thing if done correctly.
What do you think is worse:
1 seeing another Muslim doing some ridiculous supersticious ritual because he thinks that is how it is done and not correct him just because you are not supposed to argue?
or
2 arguing with that person in a respectful way to find out why he is doing that and try to correct him?
And for the case this person is short tempered and feels offended just because a 17 year old tried to correct him, then that is his loss...you had the best intentions and will be rewarded for it.
To give you an example:
I saw my father in law praying in the wrong direction in his home once. at that time I recently married to his daughter. he was at least 45 degrees off. When I spoke him about it, he got offended and got mad about it. He did that for years, and who did I think I was correcting him about his Qibla direction in his own home?
I was sure of my case because the Turkisch satellite dishes in Germany always point towards Mecca.
After he got mad, I ofcourse quickly ended the arguing because I didn't intent to frustrate anyone...but what was I supposed to do? letting him pray in the wrong direction for the rest of his life? No way.
Again, it is all about finding that middle ground.
Assalam o alaikum rahamutullahi wa barakuthu.
Thank you alot brother for these good examples.
JazakAllah khair