No, it was Demolition Man :-D

I'd like to quote Tycho from Penny Arcade, if I may. He voices my sentiment better than I could:
"The story about a prisoner deprived of his Dungeon Master's Guide and custom campaign world resonated. It sucks when the guards are all coming down on your shit, and, like, taking your stuff, but it also sucks pretty bad to be beaten to death with a sledgehammer, which is what this guy did to get in there. Tends to dilute the sympathy."

The real reason they won't let him play Dungeons and dragons is.........
Playing dungeons and dragons lets demons enter are world!
Makes bob kill his self and 8 year old tom kill his bother bill with a gun.
Just google dungeons and dragons demons if you want to read more crazy.

I should play this evil D&D...Tell me, can I pretend the goblin marauders are my teachers?

Yes you can or use magic to turn the goblins in to your teachers.
Any thing can be done with magic and fire.

I suspect that the claim that the D&D game promotes "Fantasy role-playing, violence, etc." is just an excuse to keep the inmates from "forming a gang," as the article says. For all we know, these supposed "tabletop roleplaying" sessions are just carefully disguised escape planning sessions....
Honestly, though, I have no idea why this is considered newsworthy. It's vaguely funny, maybe, if you're a gamer, but other than that it's just not that important in any way.

Can I burn wood?

Yes you can ,unless the wood has the power of plot.
plot power http://www.shamusyoung.com/twentysidedtale/?p=612
how to ruin the dungeon masters plans. http://www.darthsanddroids.net/episodes/0001.html