What does 67% recidivism for murder mean? Does it argue for death penalty?

Not all that much, AFAICT. 80% of those charged with murder are convicted overall (85% if they go to trial), and I rather doubt that rate is lower for second-offense murderers.

So 1.2% are re-arrested within three years, and the huge majority of those who are really did commit another murder.

Regards,
Shodan