No man, that is not correct. In fact it's much the opposite. Wipe was never announced. Period. Kilgore said almost a year ago that he would be shifting his dev time to season 2 enhancements, so we should not expect any more major updates on season 1. That is merely a reference to season 2, which is not an announcement of wipe.
Next thing that happened is...player count did not change sharply. We all kept playing because Reloaded is that good.
Next thing that happened is...some players went to try F2 and later some went to try AoP. Most of them keep a watchful eye on Reloaded. Now...why is the connection count apparently so high in F2? I don't know that. I hear conflicting info about Reloaded vs F2 comparisons.
Meanwhile, Reloaded has new teams forming, more teams fighting over towns and fighting in Reno, recruiting, kicking members, recruiting others, forming and breaking alliances. No man, i say Reloaded is alive and well; its a buzz of activity, and when we do finally go to Season 2, i bet we'll see nearly all FOnline players from all servers come here.
Scuttlebutt: a player was in Hub saying he and his buddy faction-raided BBS months and months ago and that is why, he claimed, BBS quit here - because they lost their faction name, their bases and much of their gear. (While i tend to disbelieve this, i am hoping that saying it here brings them back for a day for some fun lol).