LIke!
I can't see how it would work though (personally), other than regular damage to blocks/trees (not turning anything "charred" looking or anything). If it existed I could see some setting to throttle it on "how much it spreads" so if you set this to "high" then anything wood touching more wood would keep burning, and maybe any trees X blocks from other trees would pass the fire on once they "burnt down". If low, just a few blocks.
It would needs lots of smoke effect, and some way to put it out, IMHO. It would make "fire zeds" or anything exploding a rear danger to deal with, and just the effect would look cool, and I'm sure POI designers could find a way to make you have to set the building on fire to get something, then escape it