Not how I read it. He took the baby to spite his wife, and he took her so he could have a piece of his family. He is selfish and horrible. He needed to continue to justify his actions to himself (did it for my family), but he wouldn't be able to do that without, you know, having a family. Toward the end of his conversation, yes, it did cross his mind to attempt to spare Skylar, but he intended to keep his daughter when he took her.
He never wanted Hank to die because Hank was family. Walter only wanted to preserve Hank because he saw Hank as a means to preserving his(Walter's) family. See, it's always about Walter somehow. However, thankfully Walter is dead, figuratively speaking. Changed into something else, something not Walter White, and not Heisenberg. Walter needs to die violently. It won't happen, but it should. Todd needs to be tortured, and then violently killed. Todd's uncle and crew...you get the picture.