So, why do most Muslims refrain from demanding that their governments amputate the hand of thieves?
Muhammad himself encountered Muslims quite hesitant to implement Allah's command by chopping off thieves' hands, as this hadith illustrates: Narrated 'Aisha: The Quraish people became very worried about the Makhzumiya lady who had committed theft. They said, "Nobody can speak (in favor of the lady) to Allah's Apostle and nobody dares do that except Usama who is the favorite of Allah's Apostle. " When Usama spoke to Allah's Apostle about that matter, Allah's Apostle said, "Do you intercede (with me) to violate one of the legal punishment of Allah?" Then he got up and addressed the people, saying, "O people! The nations before you went astray because if a noble person committed theft, they used to leave him, but if a weak person among them committed theft, they used to inflict the legal punishment on him. By Allah, if Fatima, the daughter of Muhammad committed theft, Muhammad will cut off her hand!" (Sahih Bukhari 8:81:779). We learn here that though Allah had commanded that thieves' hands be cut off, at least some of Muhammad's contemporaries were quite reluctant to obey.
Another example: "It is narrated in Sharih Sunnat that Safwan-b-Umayyah came to Medina and slept in the mosque using his sheet as pillow. A thief came and stole his sheet. Safwan overtook him and came with him to the Messenger of Allah. Mohammad gave the order for the thief's hand to be cut off. Safwan said, "I did not wish it (that punishment); I give it (the sheet) to him as charity," upon which the Messenger of Allah asked, "Why didn't you (tell him) before you came with him?" Mishkat-ul-Masabih, Book II, Section 11, 1210-Theft, Hadith No. 127. Ibn Majah narrated like it from Abdulla-b-Sufwan and Darimi from Ibn 'Abbas. So, an early Muslim victim would rather give the thief what was stolen, rather than have the thief get his hand cut off.
Keeping these examples in mind, we can pose our Debate Question: Could the reason why the vast majority of Islamic countries do not follow Allah's command to amputate the hands of thieves be because most Muslims are more "compassionate and merciful" than their god is?