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The kid should just get a stern talking. That is all he needs.
Seriously, there is only so much one can do to punish the kid. They have not released his age, but since he was playing with matches, I would venture to guess he was under 12. Harsh punishment (such as Juvenile Hall) would only damage the kid and serve no positive function to society as a whole (it would probably only create another lifetime criminal). However, there are things that could be done to punish the boy and teach him the severity of his crime. If it were up to me, taking the kid to some of the homes that were burned up and talking to people who lost all of their possessions would be one thing that comes to mind (pre-screened people who wouldn't yell at the kid - just highlight how this tragedy affected their lives and discuss some of the things they lost).
The parents are, I believe, technically liable, both criminally and civilly for the fire (including the cost to fight it and property loss).
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The thing about quotes on the internet is that you cannot verify their validity.- Abraham Lincoln
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