Jamie, I can't think of any other way you could have handled this better. Well done.
As you said, the only way to get guaranteed recompensation is by way of police. Done deal.
Then a kid like that (you say age 14?).... what are the chances that the parents know what they are doing? Maybe they are swell and have done an admirable job in giving the kid a chance to be upstanding, but I don't think the odds are extremely high...
The parents will be more harsh with this kid for having police trouble + destroying a bike, rather than just destroying a bike.
Physical revenge... well I know of those who have done that. But, they really are risking themselves to lawsuits and such. I know a guy who beat the crap out of a guy about to break into his car... with a crowbar. Yeah, he gets physically violent if you piss him off... but he's putting himself at risk too.
IMO, you did the most effective thing possible, and it took you greater effort to do it. The only thing more dramatic would be physical, but you risk regret... in more than one way. You abided by the law, and seemed to have acted according to your true self and philosophy. I just cannot see any way you could have handled this any better. And life goes on.