I think if I found a file that made me so disgusted the killing of innocent men, women and children, the least of my thoughts would be to the people that are part of it.
But the majority of the people who Assange revealed the details of have nothing to do with any of this. Which is the problem with Assange, and WikiLeaks more broadly - they're completely reckless and irresponsible. Reasonable people can disagree about what secrets states are entitled to keep, but few people can agree that there should be none at all. The release of details of abuses by the US and others is a good thing; but that doesn't excuse the reckless release of everything that they can lay their hands on.
My position is the UK should extradite him back to Australia. It shouldn't be a British decision of what to do with someone elses citizen. I think it's a dangerous precedent.
The UK cannot "extradite" Assange to Australia, because he is not accused of a crime in Australia, nor can they deport him to Australia without breaking international treaty and UK law. Where he is a citizen of is irrelevant, he is subject to UK law because he is in the UK. The UK has an extradition treaty with the US, and under UK law we are obligated to respect that treaty and process the extradition request under UK law. There is no dangerous precedent here, it's how extradition law usually works and this is a good thing because otherwise people from countries such as Russia which will not extradite their own citizens could carry on with complete impunity against extradition from anywhere in the world.
As discussed upthread there are a number of issues with UK extradition law that personally I'd like to see addressed, but it is the law as it stands.
Assange is not special, he is not entitled to special treatment, he is simply entitled to equal treatment under the law. Which is what he is getting, and what allows this whole thing to keep dragging on through round after round of appeals.