This is painful to watch. Sure it's a deterrent, but they can also accomplish the same by seizing the vehicle and selling it. This is hugely un-environmental and wasteful. Atleast strip the vehicle for parts or something!
Our current administration is all fluff and no stuff. Crushing a car like this is juvenile at best. If its stolen, send it back to its original owner. If its not, use it for border security or give it to the military or some out of the country charity.