Correct, the -e option to ARVDUDE tells it to bulk erase the chip before burning the program into the chip. This has the effect of removing the bootloader code from the chip. So the chip is not destroyed just lacks the bootloader code needed to work with the Arduino IDE.
So you have two choices, buy or build a hardware programmer and reload the bootloader from the Arduino IDE. Or you can purchase a new AVR processor chip from a vendor that loads the Arduino bootloader into the chip. Here is one source:
Lefty