Too many issues with that location. First, if he shoots the Governor, then Daryl and Hershel have to react quickly to take out the hispanic dude and the nerd to keep themselves alive, otherwise one of them most likely end up dead (most likely Hershel).
Second, they didn't know if it was a trap. Hershel was looking all over the damn place when they first got there in the car, then Rick and Daryl were going around the back way between buildings and stuff to get to the meeting place. For all they knew, the governor had a bunch of guys sitting in the woods waiting to ambush them if something happened to him during the meeting. Who knows.
If I'm in that position, I wait until I have him in the open in battle to take him out, instead of take him out in a situation like that and risk being overrun with his men who might be hiding somewhere nearby just in case I do just that.
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