The only context I see for military chaff is as a decoy.
http://en.wikipedia.org/wiki/Chaff_%28countermeasure%29
Chaff shouldn’t really be starting fires, as it’s relative inert material being ejected to decoy a missile. However, decoys for heat-seeking/infrared missiles are heat-based, usually flares.
http://en.wikipedia.org/wiki/Flare_%28countermeasure%29
So these, used improperly, could cause fires if they landed, still burning, on dry brush.
They are still used because militaries still use infrared missiles and, therefore, decoys against them need to be tested for/against.
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