'Doesn't burn down villages' is a term originating from popular video game 'Skyrim' when a character from the game states that "legends don't burn down villages". Therefore if someone 'Doesn't burn down villages' then they are in fact a legend.
EXAMPLE 1:
Charlie: Hey look it's Mr. Roberts!
Isaac: That guy is such a legend
Charlie: Yeah he doesn't burn down villages
EXAMPLE 2:
Charlie: Look, Jason Statham, that really cool badass bald guy from the Transporter series that everyone bones over
Isaac: Yeah, he doesn't burn down villages
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