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I don't get the point. Plywood isn't exactly light and the fuel used to launch it is not renewable.
I think the idea is that when the satellite exceeds its lifetime and is put into an orbit that leads it back to earth the resulting fire on reentry totally destroys the craft. As opposed to having to warn people of space debris coming down into their area.
Aluminum already burns up on re-entry though. The only things that typically make it through are high melting point materials (like titanium and carbon), or low ballistic coefficient objects (like spent rocket stages).