During a recent game of DL as the Yor, I had the Fundamentalists random event pop up, but was told in the message that none of my planets had revolted (even though I was evil). The only other evil player in the game was the Drengin, and they were down to just two planets. Since the Fundamentalists rarely take just one planet, I wondered if.. sure enough, they had taken control of both Drengin planets. There were still a number of Drengin ships on the map and I could still talk to them, but when I hit the turn button they simply vanished, without any kind of "Race Eliminated" message. It was pretty funny (especially as we disliked each other)...
...but I am certain that the Fundamentalists are not supposed to ever take all of a race's planets.
(It did make sense that the Drengin would revolt, though, as they were in revolt to my influence and losing badly in a war with the Altarians. I know this has no actual relation to the event but it was nice from a "story" perspective).