QuickNick: Under no circumstances is it okay to up and destroy someone's building and "move" it, destroying in the process an irreplaceable monument and several roads. If you feel that someone has built something in a place encroaching on "your" land, FIRST you talk to them about it, THEN if they're not doing anything about it, you talk to me about it, and I'll get it sorted. At no point in time is it even remotely acceptable to take matters into your own hands like that, certainly not when the "house" it's near is a hidden underground cave that someone could easily miss if they weren't looking for it.
Fireballs may have not been in the right to build there without your express permission to occupy those pixels, but you were most definitely in the wrong (and significantly more in the wrong) to take it down and move it without regard for what you destroyed in the process. Two wrongs don't make a right, and all that jazz.
In this case, Fireballs' punishment was accomplished when you took it upon yourself to protect your pixels. His work on clearing that field and starting on the capitol building is now wasted, as he will not be continuing that project.
For you, in the spirit of "punishment should fit the crime," since you cleared out someone's stuff, you will find that your house has had a slight interior redecoration. You should have plenty of eggs to rebuild your chicken farm in your chest. (Seriously, what do you need so many chickens for, anyway?)
I feel that this was a rather light punishment, but certain people on the server were against banning you. Bear in mind that if you ever do anything even remotely like this again, you will be banned. Plan accordingly.