I understand that you might be extrapolating that such a fight on a residential street must have destroyed houses; you can make that assumption if you want. I just want to know if I'm missing a place where it's actually shown or described in the book.
Regardless of whether houses were destroyed or not, I agree with you that having that fight wasn't the kind of wise action we expect from Diana, but I think of it as an aberration born of grief and guilty feelings and rage, not purely inconsistent writing. (I say "not purely" because I do think that slashing GL with the sword took it over the top.)
Something that's consistent between the two books is that concern for others can make her impulsive. She doesn't react as impulsively to petty insults against herself, whether it's Hal hitting on her in an early issue or Orion slapping her on the butt.