The "Remove $group_name" confirmation dialog (accessed in the contact menu) currently says the following:
Remove $group_name from your list?
Be careful. You cannot undo this action.
This is the exact same text as is used for "Remove $buddy_name" (it's the same menu option as well). The message does not make it clear that removing a group also removes all buddies in that group.
The dialog should be changed to something like this for group deletion:
Remove the $group_name group from your list?
This will permanently delete $number of your buddies. You cannot undo this action.
The "Remove" button could also be changed to say "Remove group", for extra clarity.