salaams sister shyhijabi
The ruling cannot be taken from the one hadith and I believe you are correct in your opinion that the hadith needs to be looked at in entirety and in context and with other hadith - thats how people get confused.
The hadith is:‘The prayer of the women is better in their house than in the mosque and the prayer of the women is better in their rooms than in their house.’
This is viewed in this context insha'allah at the time :The Prophet (Pbuh) said that if a person prays in the mosque, he gets 27 times more blessings (sawaab). Some women argued, “We have infants at home and other house-hold work and therefore we cannot go to the mosque”. Thus, the men have greater advantage than women for receiving such blessings. It is then that the Prophet said what is reported in the above Hadith that, “The prayer of women is better in their houses than in the mosques and the prayer of the women is better in their rooms than in other parts of their house’.
It relates to reward - meaning women can get the same reward by praying at home - as we know salat in the mosque is not compulsory for women as it is for men ( jummah prayer )
I am not a scholar but with a bit of research this is what I have found as said by most scholars.
Also to be read with the following hadiths insha'allah
The Prophet said, ‘Do not prevent the female servants of Allah from going to the mosque of Allah.’ (Sahih Al-Bukhari Hadith Vol 1. Hadith 832)
It is reported by Abu Hurairah that the Prophet (Pbuh) said: “The best row for men is the first, and the worst for them is the last. The best row for women is the last, and the worst is the first.” (Muslim) (Sahih Al-Bukhari Hadith Vol 1. Hadith 824)
Aisha RA also reported women going to the mosque in the time of the Prophet pbuh and leaving straight after the salat.
This is the Hanafi view alhamdulillah
http://qa.sunnipath.com/issue_view.asp?HD=10&ID=8740&CATE=216
and this
http://qa.sunnipath.com/issue_view.asp?HD=3&ID=4151&CATE=456
So in my opinion it is about a sister weighing up what is better for her - to pray at home for the reasons stated in the links ( fitnah, domestic duties etc) against go to mosque (need of Islamic knowledge, support, pious company, no commitments at home) A woman is not obliged to go to the mosque and should not go uneccessarily in order to chat and socialise if the environment is not right, or if she is neglecting other duties etc but she should not be prevented from going at all either. In the case of revert sisters in Western countries it is especially important to go to the mosque.
Anyways - hope that helps. I find
www.sunnipath.com a very reputable site for advice and rulings.
Salaams