What is meant by the hadith "the killer and the killed are in the Fire," and is it related to intention, given that a bad deed is only recorded upon its commission?

The killer and the killed are in the Fire if two Muslims meet with their swords, because the killed was eager to kill his companion. The reason for the killed's entry into the Fire is his determination and insistence on killing despite his inability. This is similar to one who intended to do evil with a sincere intention and was only prevented by inability; his evil intention bears the burden of the act, like one who says: "If I had money, I would do with it what so-and-so did in disobedience." And whoever intended a sin and insisted on it, and did not commit it except due to inability, is sinful. As for one who intended an evil deed but did not do it, seeking the pleasure of Allah, a good deed is written for him.