A situation came up the other day during a game, and I had no idea how to resolve it properly.

Basically, a player tried to play a deforestation card on a square that still contained a village token. Read strictly from the card, you could do it.

Has anyone else come across this situation yet? If so, how did you rule it and why?

Me and my friends play as it card only changes kind of terrain and bonuses (trade, production, coin, resource), but not removes a village.

I'd also rule that the terrain around (under) the village change but the village remains.

Also, thematically: why shouldn't the villagers be allowed to cut down some firewood?