Yes, that is correct.
You will start again with nothing, not even your characters.
On a plus side wolf33 has decided he's going to be the first to 110 so watch out for him causing mayhem across the server again.
Personally, after initially being rather mad at this, it could be quite fun and we're currently discussing which 6 out of 10 characters we'll make as main characters with 1 on each of the 6 accounts. I assume the account structure is staying as it is.