Another possibility (to outlawry and more bloodshed) that also shows up the flaw in the weregeld system is that the weregeld you receive can be used as weregeld you pay when you continue the feud. Njals saga is one Norse saga that has an excellent example of two households that keep paying the weregeld back and forth, but the killings continue. There is one point where the weregeld is payed, and the head of the household (Njal) just puts the bag of silver on a shelf without touching it - and sure enough, a little while later someone is killed, his household is found responsible, and he takes down the bag and hands it back.
Weregeld relies on peoples greed overpowering their hate. It doesn't always work. Which is why it was eventually replaced.
Cheers David ------------------------------
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