No I wouldn't take all the books. TBH pop up books are a temptation even for kids who are much older than your two. I think the problem here might've been not keeping them separate from all the other "wear and tear" books in the first place. If you have "good" books for kids of this age, it's a good idea to keep them up and only bring them down when the kids are supervised. You can have plenty of other cheap books that they kids can access anytime that won't make you upset if they're damaged - op shop books or golden books etc are good for this.

FWIW it could be that only one child was involved in the ripping. Seems a bit like it could be a serial crime.