Setting a fire to a house in the hope that there is an insurgent inside is probably a bad idea, so I'm going to move away from that interpretation. Rather, attack by fire could be directed to something much more awe-inspiring: Artillery or Remote Missile Strikes. If the strikes seem at all effective, follow up and seize control of the area. If not, then wait.
The evolution of espionage is certainly a broad topic. It can be traced back in American History to cases such Enoch Crosby, a spy in the revolutionary war who joined the British army to reveal battle plans to the American soldiers. Spies played a major role in every major conflict since, such as the American Civil War where the lines were often blurred between friend or foe and this allowed spies to operate with greater impunity than before. After the Spanish American war, the US began taking intelligence gathering more seriously and as a result G-2 was founded in the Army and ONI was founded in the Navy. Counter-intelligence evolved from the use of people as spies to areas such as cryptology and the decipherment of messages. American intelligence failed to intercept the messages sent by Japanese spies regarding