No, as far as I can see, there is no other interpretation for this story. It is what it is in a true literal sense. It shows that, although the Israelites thought the words of the Old Testament were the inspired words of their deity, they had gotten it wrong. Looking at this situation directly as stated, would any civilized or divinized God kill a small child because its father had kidnapped, raped, and murdered?
As a result, my conclusion is simple. The Bible as it is written truly represents what the Israelites believed about their God, Yahweh, or what the Levite priests told them to believe about their God. The Bible should not be used for inspiration ever, unless its gross evils are included. People need to have a sense of morality and justice, but as shown above, it does not come from the Bible, the Israelites, or the Levite priests.
It comes directly from the natural law of a Wholly Other being who built into our brain’s cortical wiring a sense of love and decency as mankind evolved.