You missed one word out of that statement:- "when BC adopted the NAZI policy of firebombing civilians living at non-military areas." Edgar
I think its correct to say Bomber Command, as a result of the "Area Bombardment" policy implemented a policy of unprecedented attacks on civilians (Destrution of 80 of Germany's biggest cities). The euphemisms such as "Dehousing" and "Demoralisation" are indications of the targets were human. Arthur Harris, honest to the core, makes no quibbles about it and often makes the point that no specific target was chosen, such as when Lubeck was fire bombed.
That the Luftwaffe attacked cities and used incendiaries is without doubt, however the cities did have valid targets, which were specifically targeted and were chosen for specific reasons to support immediate tactical or strategic goals.
RAF raids on German cities (targets in and around Munich) began the day after the Luftwaffe bombed parts of Rotterdam. British propaganda caste the attack as a reprisal for Rotterdam bombing but had in fact been planed for a while. Rotterdam was a besieged city, the German Army needed the bridges and needed to keep moving in order to participate in the Battle of France, these were high stakes as loss against France and Britain was still possible. The Dutch officer in charge of negotiations had delayed and milked a surrender of the city for almost 3 days and a mix up with ulimatum extensions, time zones and the non-availabillity of the valuable and accurate Stukas sealed the cities fate.
Despite general accusations there doesn't appear to have been any terror bombardment of Warsaw, if there were such orders given they were also refused.
Attacks on German cities expanded in scope after a lone Heinkel accidently dropped its bomb load on London, killing no one. Again propaganda used it as an excuse. The Luftwaffe had been avoiding targets around cities as much as possible (ports around naval base cities excepted)
Coventry was the home of Britains machine tool industry and also the home of much of its aero-engine production. It was attacked using x-geraet, a beam riding system as accurate as the legendary Oboe. Large Factories and dwellings shared walls in this citiy. The city was fire bombed but the targets were the specific factories althout the areas around them were clearly subject to something equal to area bombardment, the dwellings and occupents were not the target.
X-Geraete had very precise beams, but the main beam had 14 side lobes that could be accidently used. I'm not sure if intentional but the perimeter of one of the Conventry raids did have incendiaries dropped in a v-formation. This may have been marking to perimeter of the bomb zone or it may have been accidental.
The "Baedeker raids" on Bristish tourist towns at a latter stage of the war was a reprisal to attacks on cities like Lubeck, a medieval city of world heritage status. The fire bombing of this city which had no major targets, had a profound impact on the Germans. Goebells thought it was a new type of cultural warfare designed to demoralise by attacking markers of cultural heritage.
The area bombardment policy was driven I believe by frustration at the inabillity of bomber command to attack accuratly and survivably during the day. I think Curchills adviser, Lord Cherwell (Frederick Lindemann, a German born Jew with an American mother) who has been described as having a pathalogical hatred of Germans set Bomber Command deeper down this path than it otherwise would.
There was little waiting for better aircraft or better navigation aids able to carry out different policies. The "over the horizon" version of Oboe, that worked with orbiting aircraft and was working in 43 was never pushed enough because it seems the policy was set in stone.
When the V2 (and V1) was prematurely rushed into production it was to provide a counter terror with which it might be possible to negotiate an end of bombardment of German cities. It was hideously inaccurate (4.5km CEP by German trials but still more accurate than H2S/H2X) The more accurate guidance systems of the V2 (vollzirkell) or full-circle, used a columated beam riding system with motor cuttoff controlled by doppler and range for an accuracy of 500m. It ran into trouble with ground plane interferance in testing in 1943 and had to be re-engineered for higher frequencies and compensating techniques. The new components were bing built at the end of the war.
The Luftwaffe was used to attack cities and that they fire bombed them is without doubt, but it does seem they were responding to immediate tactical needs such as supporting an Army crossing (Rotterdam) or destroying aero-engine infrastructure (Coventry). I can certainly see how this 'escalated' tit for tat. I don't see that there was a Nazi, Luftwaffe or a German policy of city bombardment that tirggered this.