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I would expect Tyr clerics to respect the dead of civilized humanoids (elves, humans, dwarves, any race that is obeying laws), not chaotic evil goblins. There can be no reasoning with them except through bribery, force, or fear. The head-on-spike display is their language. I wouldn't even have a problem with a paladin doing something like that to a degenerate goblin who might be considered an animal rather than a humanoid capable of understanding law and justice. I like the idea of a LG paladin using the tactics of the enemy against him. It's a grim logic that guides the fanatic. It's interesting how brutal LG can be in the face of CE.
I'm wondering why there was such a debate between two clerics of Tyr. Unless they studied in different temples, I would think their philosophies concerning goblins would coincide. I would have had that discussion out of game, then proceeded in-game knowing where both clerics stood on the matter.