Yes, but all those who have died before will be "brought back" to fight in the Last Battle, it won't be just the "good" inhabitants of Middle-earth. All of the heroes of the First Age will be brought back from Mandos to fight Morgoth's forces. So even if all the "good" inhabitants are obliterated from Middle-earth, there is still a sizable fighting force West.
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But Melkor also was there, and he came to the house of Fëanor, and there he slew Finwë King of the Noldor before his doors, and spilled the first blood in the Blessed Realm; for Finwë alone had not fled from the horror of the Dark.
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