It isn't actually wiped out, the movie is set in an alternate timeline.
Well, there are several mindsets on what reality really is... and we know that on occasion Trek played with the "parallel realities" approach. However, there's not a lick of real science in support of that, and if you really think about what a "dimension" is (just another "direction of travel" within a common reality)... it seems unlikely to me and to many others.
I'm of the opinion, rather, that "every instant, technically, already exists." That is, although we only perceive time one instant at a time, and our perception of time is "sliding down a slope" at a particular rate... all time already exists, just like all X, Y, and Z coordinates already exist, even if you're at only one particular location when measured.
If that perspective is accurate, well... any change in the past destroys what "might have been"... every choice has ultimate consequences.
I find any other perspective to be silly fantasy, seemingly to infer that no choice has any real consequence, because all choices have been made and all consequences have been faced, in an infinite number of "parallel existences." It sounds like wishful thinking to me, not science. Like something a scriptwriter would come up with, not a physicist. (And yes, I know that there are a few people who practice science who've posited this sort of thing... but they're engaging in fantasy, not hard science, when they do it.)
SO... from my worldview... this movie destroyed all previous "Star Trek." It erased it, except in the memory of a single anomaly who existed in a "loop of time" which has been closed and deleted. The Abrams-verse is the "real" universe now... the previous one has been, in essence, destroyed. That "Spock-Prime" remembers it (or that we can go back and rewatch our old "memories" of it) is irrelevant. From a "future stories" standpoint, this is all that there is. The rest is done... completed... gone. Nothing but memories.
I had been hopeful that this movie would have ended with Kirk and Co somehow managing to deploy the "red matter" into the star which, in the future, would destroy Romulus... perhaps instead of having the "big final battle" (which is such a cliche, anyway).
My version of this movie would have had the "nuTrek" crew on the "nuTrek" Enterprise engaging Nero, at the cost of their ship and their lives, to allow "Spock Prime" (or heck, even nuSpock) to pre-empt the future event... prevent Hobus from going "hypernova"... and suddenly, all is as it ought to have been, with the final scene in the movie being Spock doing a "pass the baton" bit with his protege... a non-tatooed Romulan named Nero.
That would have been a "Trek-style" ending. I'm just sick of "let's blow up lots of stuff and kill the mustache-twirling villain." That's not what Trek used to be.
By this argument... "The Squire of Gothos" would have ended with the Enterprise blowing up Trelane. "Arena" would have ended with Kirk wiping out the Gorn and the "higher powers" as well. "Errand of Mercy" would have ended with a massive battle. And on and on...
Trek was never about "blowin' up stuff real good" nor was it about one-dimensional villains. Yes, Nero has a great backstory... shame it wasn't in the movie and you have to read a comic book to get it. As far as the flick is concerned... Nero's a classic cheesy one-dimensional baddie.