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So did I read this right?

Vulkan made a device for the golden throne that will destroy Terra and much of the webway if He (Big E) fails/dies?

I am not sure about destroying also the webway but yes, it will destroy Palace and whole of Terra. On the other hand, Emperor also said that it will strike a blow to Chaos "the like of which they will never recover from" and that the device will magnify the power of Golden Throne (which is psychic), so who know what exactly will the thing do.

Taking a guess, the destruction of terra will be channeled into the warp through the webway and basicly deal a ton of damage to the warp. it'd likely cripple chaos but... chances are intersteller travel'd be hard.