Yes. Players choose the war server. Game has not forced anyone to go to the War server.
War server is to wage war and destroy enemies, run them before you and hear lamentations of their women in chat.
But you cannot destroy capitals or free towns. So you CANNOT lose "pretty much everything", even if you lose the port you do not lose anything - your personal assets are not destroyed, your warehouses are not emptied, you can move all out in trading ships.
ps It does not happen in other hardcore games. in EVE online you lose all assets and all industry when you lose your clan station. We considered this option some time ago but decided that players have enough stress elsewhere. Your ships are not going to be lost.