Sure, but please correct me, sticking strictly to airbus MEL, carriage of luggage would be possible in this case.
Yes you may be correct as I don't know the Airbus MEL. However, I would class passenger luggage as combustible. As to an ignition source, well who knows what's in their bags! Ever seen the firefighter demo of a bit of wire wool and a mobile phone battery?
Personally I would be reluctant to depart with anything in the hold that could burn if I had no way of putting it out.