What about the proportionality? What else could the take? Their clothes?
The iraqis were looting something, unclear exactly how and what, but wood was involved somehow. Presumably the Iraqis had been destroying property and breaking into homes and buildings in their hunt for loot.
So...how do you punish them?
Take their loot? Not enough punishment, and how fun would it be to drag around a few hundred pounds of firewood on the next mission?
Take their clothes? I dont think so.
Take their car? Yeah, right, like anyone would want to drag that car around Baghdad.
Destroy their loot? Not enough punishment, and it would presumably punish the wrong people too.
Destroy their clothes? I dont think so.
Destroy their car? Well... why not. It teaches them a lesson, it removes their ability to move around their loot in case they want to keep looting after the troops are gone. It hurts them but is not an overkill, nor does it cause traumatic suffering, nor is it against any fundamental human rights etc etc.