May Allah bless him and grant him peace

The duah (prayer) Sallallahu alayhi wa sallam (صلى الله عليه و سلم) "May Allah bless him and grant him peace." is used after stating Prophet Muhammad's name. Unfortunately however, this has been translated incorrectly by many to mean "Peace be upon him", which to me is quite different. The correct translation, is a prayer to Allah, while the latter is almost a statement, not directed to anyone. It may seem like a petty semantic issue, but I think our intention when saying it is affected by we understand to be the translation and after all, we are judged by intention.