That interpretation of the commandment against coveting seems very unlikely. Exodus 20:17 says:
“You shall not covet your neighbor's house; you shall not covet your neighbor's wife, or his male servant, or his female servant, or his ox, or his donkey, or anything that is your neighbor's."
Nothing there mentions idols, and given the references to wives, servants and houses, it seems particularly unlikely that it is specifically referring to idols.
Certainly there are commands not to covet the idols of the nations, but the verses you quoted come from Deuteronomy 7:25-26, where the context is giving instructions for when the Israelites enter the land, rather than commentary on the 10th commandment. If anything, it is more an application of the 1st and 2nd commandments. The account of the 10 commandments in Deuteronomy appears earlier, in 5:6-21, where Moses is quoting the commandments given in Exodus 20:1-17 by way of reminder to the new generation that is about to enter the promised land without him. The command not to covet is generally understood as having broader application than just not coveting idols.