The regulations for creating buildings from wood should always be strict to avoid potential fire damage. In the recent fire, 240 units were destroyed but the damage could have been significantly worse. It's very easy for fires to happen and badly designed buildings make is considerably easier for the fire to spread.
The incredible, raging fire in New Jersey sheds a spotlight on a particular issue local to the state. As the fire chief himself pointed out, the building did indeed conform to state building codes. But the problem is that, with a wooden structure of that size, once the fire spreads into the floors and walls, it is very hard to stop precisely because they're made of wood. The code should require that they be concrete.
If there is concrete proof that New Jersey's current building codes for wood structures has either been the direct cause of injuries to people or damage to properties then I would say they need to become stricter. Also if architects can prove their current standards could evenutally put people into harms way then I would say its better to be pre emptive with these things instead of waiting for tragedy to strike.
Wood structures by their very nature don't do well in natural disasters, so stricter building codes cold save lives. But the sad reality is that people have a choice to obey laws. Laws on the books are powerless if people refuse to follow and implement them. Gun laws are a great example of powerless laws.