That's true. And it has been said before, like on the first Community site forums.
The 4th Inv announcement said as well:
"The reason for an announcement is that we will be changing the rules. We do not guarantee a human victory this time. Our NPC sides have been set up with pre-determined, limited resources (and income, just like human realms). They are balanced for a fair, but tough fight. And they may win. If they do, you may lose part, or even all, of Beluaterra."
As well, there were times when Tom might have hinted that he desired BT to be wiped, but this is unsubstantiated, and unless he gives some statement, should not be taken as fact. I do not think he would say anything about it though, since that would artificially influence the continent's dynamics.
He vaguely mentioned once or twice that we might eventually need to close a continent due to declining player numbers. Players, I believe, are the ones who speculated/assumed he meant Beluaterra, as it'd be the one with a most logical means of destruction.
Now that I think of it, though, why weren't the war islands wiped by daimons? It's kinda lame that the islands "sunk", and I always thought the RP around that was completely impossible and hollow. Destruction by battle would have been a fitting end.
