I can understand burning people alive if that's what's necessary to protect your home and your land.
Pretty clearly the developers hired these thugs to terrorize and cow the villagers. That's the only way a few hundred will prevail over a few thousand.
The villagers either recognized this or acted on instinct, but turned the tables on the developers. Now their potential errr... employees know that an excruciating death is a significantly possible outcome. This raises the cost of employees and makes pursuing this village much less profitable.