The reporter was using a metaphor to describe the pilots' apparent insensitivity, not citing fact or even hinting at it. And that analogy has been used since the /first/ Iraq War... long before there was an XBox. So, time to knock off the knee-jerk, 'don't attack my hobby' reactions.
After reviewing the full video, it does become pretty evident that these pilots were itching to do some damage. And maybe they were justified in that. After all, American forces were being attacked that day by insurgents coming out of that area. And yes, it can be difficult to distinguish weapons at 800 yards even with high-resolution cameras. Remember, the pilots are only seeing part of what the camera is... because they're also busying flying the helicopter. (Although here's a hint... an RPG is rarely held against your FACE when you're going to fire it! And it was this action they mainly cited to get clearance to fire the first time.)
However, it was their absolute - almost chilling - callousness during the engagement that should be the main source of contention. Coaxing a grievously wounded person (the journalist) to pick up a gun, so they can finish him off? Snickering at the people they're mincing with 30mm ammo? Lying to their command when the van showed up to get permission to fire (the driver was helping the wounded, NOT retrieving weapons as they claimed). Laughing again at nailing the people inside the van - the children, they later coldly dismissed. And again getting a chuckle over the body being mashed under the treads of an APC (I seriously hope that poor guy was dead at the time). It's this kind of attitude that needs to be examined - and yes, I used to be in the military, so I understand the mentality.
But honestly, when one considers some of the crap going on with the military right now ( http://www.nytimes.com/2010/04/05/world/asia/05afghan.html?src=twr ), can we really be shocked that this sort of thing occurs?
This was sad and horrible, but let's remember what's important in this discussion... and it isn't video games.