The wood used in pallets is garbage wood, all wood is graded. You cannot cut down high end old growth and chip it. You will loose a lot of money due to chipping high end wood into low costing pallets and you would get fined by the government.
It is plausible the company was using garbage and blown down wood as well it is plausable that their cutting is to reduce fire risk. Logging has a terrible rep alot if people watched scary American clear cut documentarys when they were young and assume we wrecklessly mow down forests without thought or planning.
If people don't want forests to be logged they can quit using wood. As well you'd need to stop putting out forest fires and let nature reset itself as it always did before humans showed up.