Driving is a privelege, not a right. Unlicensed drivers have no business being on the road. They are unlicensed for a reason. Either they are too young to apply for a valid DL, they are too stupid to pass the tests for a valid DL, or their license has been suspended for cause. Whatever the reason, they are a danger to other drivers on the road.
Yes, the vehicle should be towed, and the unlicensed driver should be immediately cited.