I thought that we wouldn't be forced to PK our chars unless we decided to. There's even a 7 day period to bring back your PK character. Still, genocide sounds like a great idea in theory, and there's probably enough rp reason from the Fringe alone to cause this to happen.
But maybe It could be adapted. Not an entire race, but a city or village. And if the city falls, it is destroyed utterly, making it a ruin. People from that city would become refugees, having to search for a new place to call home or hide from those who so ruthlessly drove them out.
Just a thought.