yes, that might wipe them out but it takes a while for him to complete his jutsus so someone is bound to notice, and either escape or come up with a defense, before it happens.
that doesn't stop Deidara from being awesome though, hmm!
I think as long as Naruto 'saves' Sasuke and defeats Tobi (after the last few chapters that came out I stopped calling him Madara) then i think if Naruto dies it would actually be a fitting ending even though most of us will cry our eyes out because of how awesome he is...