The answer is yes. It has been confirmed by Sam Catlin that Arseface is pretty much the only “character” that survived the shit storm, literally, that ended in episode 10 of season 1. Remember when Arseface gets sent to Hell? Well, apparently he is still there when the town blows up. Odin Quincannon, the Quincannon boys, Emily and the rest of the townsfolk are all dead.
Season 2 will start with Jesse, Cassidy and Tulip hitting the road; much like the comic books start. It was a very nice touch to see the end of Season 1 being the three of them in the diner. From early reports, we will see Herr Starr, Allfather and Jesse’s grandmother and uncles as the major villains during season 2.
We will also learn who kills Jesse’s father. Those of us that have read the comic books already know how that is. There was also a little tattoo Easter egg that helps explain that in more detail during season 1. If you read through the first 10 comic books you will figure it out quickly.