Good post... gets us thinking! My charity guild has 'inherited' many such a stash from deceased quilters. It's hard to distribute the fabric, even for free in a guild. Every member is very selective on what they will take home, because most are already overloaded with their own stashes and don't have a lot of room to store more. It's hard to find it a new home. I already feel like I need to stop buying and start using up what I have at home in my stash. Permanently.
But... burning fabric and thread??? That seems so hateful. That man must have had some serious resentment against his wife's quilting hobby.