It doesn't seem that unrealistic to me, given how much of the real ecosystem humans have destroyed so far, and continue to destroy. In fact, I'd say the developers could have predicted this outcome with a quick glance at the real world.
You have a good point that the natural world renews itself from incoming energy, but that doesn't save it when it's destroyed at a faster rate than it can renew.
You have a good point that the natural world renews itself from incoming energy, but that doesn't save it when it's destroyed at a faster rate than it can renew.