The forums are excited about this, and they should be. Short-term this will certainly work for DF, and the high player interest will result in more PvP, which will further fuel interest/action.
Long-term this is of course not sustainable. No one is going to be fighting over farming spots or villages when everyone already has more gear bags than they know what to do with (unlike EVE, DF is rather poor in terms of removing items from the game due to PvP). Same goes for PvE’ing for the sake of character progression. At 20x skill increases, everyone will be maxed shortly, and that aspect of the game will be dead.
The result will be sieges for the sake of sieging/PvP, with everyone being maxed and in max gear. How long THAT stays interesting I’m not sure. On the one hand it resembles a FPS’s deathmatch system more than an MMO, but on the other hand FPS deathmatches have been known to keep people interested for a long time, and DF does have an amazing combat system going for it.
Of course, long term might be a non-factor if DF2.0 is even remotely close to release (under a year). That, however, is a giant ‘if’.
At least the wipe question has been confirmed :)