That's clearly incorrect, Fatihah. Every faithful and devote Muslim venerates the Holy Prophet Muhammad. Period. There is no in-between. This is also the conflict between Christians and Muslims today in that the Divinity of both Jesus Christ and the Prophet Muhammad are not at all properly understood by either party today.
Why do you think the Blessed Beauty [Muhammad] said, "When here will come the resurrection Day, I shall be the leader of the Prophets and their spokesman and one who will intercede for them without boast." [Fazlul Maulana-- Al Hadis, Vol. 4, p. 326]... or "I am Muhammed, son of Abdullah, son of Abdul Muttaleb. Allah created creations and made me the best of them. Then he divided them into two groups and made me the best of the two." [Fazlul Maulana-- Al Hadis, Vol. 4, p. 323]
He [Muhammad] alludes to His divinity numerous times in the Hadith and the Qur'an exonerates Him as the most precious thing in all the universe! So, yes, idolization of the Holy Prophet Muhammad has and is within the Muslim community as much as in the Christian community, however, to varying degrees. Christians do worship Jesus and Muslims worship neither Christ nor Muhammad, yet their veneration is as intense and the theological understanding of their Prophet-Founder is lacking, particularly in the Sunni community.
Response: Clearly the hadith speaks of nothing about divinity. Neither the word "divinity" nor a word synonymous to it is mentioned in the hadith. A statement can't mean something it clearly doesn't mention. The hadith clearly does not allude to divinity, but rather your statement alluding so.