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In the neighborhood I grew up in there was a coyote killing outdoor cats for awhile. Even though it had killed the cats, the residents still pitched a FIT when the authorities wanted to put out leghold traps, saying that they were cruel. (not to mention what else might get caught in them!!!) As far as I know they eventually humanely trapped it and relocated it.
I wouldn't have killed it either. I'm careful because I've seen rattlesnakes around here before (though never actually in my yard). The only thing I've seen in my yard is a black racer who has lived in our bushes longer than we've lived in our house. We first saw the racer just after we moved in and 5 years later we still see him quite regularly (Justin saw him 2 days ago). :)
One time when I was little I was outside in my yard and there was a raccoon running around like crazy, right near me. I went inside and told my mom. My dad wasn't home, but my uncle lived just down the road and my mom called him. My uncle feared he was rabid and came over with his shot gun. After seeing how the raccoon was acting (and in the middle of the day nonetheless) my uncle decided the best thing to do was to kill him. I would have never been able to kill him, though I think my uncle made the right decision for everyone (raccoon included) at that time. :(