There are gradients of force, they could have done this without destroying this person's house, it's not like he had hostages that were in immediate danger, he was hiding in a house..

Just because some force is reasonable doesn't mean all force is immediately reasonable and it's not stuck at higher levels as the situation changes. While he's being chased and posing a higher threat more force is reasonable but once he was barricaded in the house the danger posed to the public is reduced.

Destroying a home because you want to demonstrate how hardcore you are is none.

Surround it and wait for them to give themselves up. That's what other countries do.

"...after __believing__ they heard Seacat fire several rounds."

Seems like that isn't even 100% certain.

Gee, so how much uncompensated destruction is permitted if the police are fired upon? What if they leveled the block? What if they drove a tank through the neighborhood, destroying everything they passed on the way. Or every building the shoplifter was suspected of having entered?