Alas two things wrong with that. 1. CO2 lasers are in the far infra-red so he couldn't have seen it with smoke. Unless it brunt the smoke molecules ionising them which is possible but not what I say they were thinking of. 2. But worst of all the prism in the Binoculars if 10,000 watt laser light shined on it would probably melt. Mirrors or not 100% reflective they are around 98% (considering the Laser is in the infra-red and the binoculars built for the visible this would be even less) that means that 2% of the laser is absorbed by the mirror. No a normal mirror will be damaged with a 200 watt laser at its designed wavelength. So imagine a laser 50 times more powerful laser at a non-designed wavelength. The mirror would probably have a hole in it very quickly.
Still great stuff just when I was a kid I enjoyed it for its coolness, now I enjoy it for pointing out errors.