Short term they are trying to put out the fire 100%, bringing in supplies, get the power back on and recovering and identifying the bodies. Total is now 55 I believe and around 1,000 people still unaccounted for.
They will not shut down tourism in the rest of the island and will likely resume tourism on the west side when things settle down. Most hotels are actually outside of Lahaina in Kaanapali, Honokowai, Kahana, Napili and Kapalua. Most of the shopping and historical sites were in Lahaina. Front Street has basically been a touristy area as long as I can remember it and as such has been geared towards tourists more-so than locals.
There is already a massive shortage of affordable homes and rentals for locals so this just makes it many times worse. I have no idea what they will be doing for housing for locals displaced from the fires while things are rebuilt. Speaking of which, much or what has been lost will never be replaced due to more modern laws about building close to the ocean, sea walls, etc. Lahaina as we know it will never be the same again.
I was upwind or about level with the fire and the winds were howling off the mountains before the fire, if the fire actually travelled faster than the wind that is a scary, scary thought.
Deforestation is likely a part of it, however until the late 90's or early 00's I believe the area was in sugar cane. Much of the island has been pimped out to tourism and as a result a lot of former farm land has either become subdivisions for the wealthy or open fields. No planning of firebreaks, just waiting on the next fire to arrive. This time it happened with hurricane forced winds with no greenery to slow it down for people to have the proper time to evacuate.