Still doesn't fly. This was the era of wonderweapons never before seen in war. Napalm was invented to destroy wooden Japanese cities. It was horrible, unable to be countered and unprecedented, and the Japanese didn't surrender. The V2 was used en-masse against the the UK. It was horrible, unable to be countered (for a while), and the UK didn't surrender. Even earlier, both sides used phosgene gas in WWI, it was unprecedented, a colorless, invisible, implacable creeping death that only killed days later after exposure. It still didn't cause the sides to surrender. You would have an arguable case in the nuclear bomb, except that a not-insignificant portion of the Japanese brass still didn't want to surrender, and there is nothing in the Empire's arsenal of a mere 100 fighters and 12 bombers approaching nukes anyway, so no, the argument is still ludicrous.
Basically, 100 TIE fighters blasting at a city for hours will not approach the damage of a single firebombing run of 1000's of B29's dropping napalm. The argument boils down that WWII people are so ignorant they would surrender immediately out of, what, a sense of awe?