Yeah, i'd destory that house. I highly doubt it's structural integrity on how bad the walls and ceillings were infested. Looks like it's ready to come down on your head in the next few years if they're in the ceilling that bad.
Reminds me of the above ground water line i helped fix in my old place the third time (first time fixing it for me when i moved in). There was a story about super ants. The above ground water line at the time had heat tape, foam insulation (the kind of foam that computer monitors are held in position with in the box; apparently wood ants like this stuff?), and a wood outer housing to keep squirrels out. Apparently ants like to eat foam. And a nice warm environment meant none of them needed to go dorment for the winter. These ants apparently got big.
EDIT:
This hive in human quarterst video was disturbing. You hear the guy say a couple of times how he hopes they aren't in the walls when you can see two holes in the wall that bees made. Yeah bees will **** your structure up.
Part two of the video is quite interesting as well. **** that hive. These videos really put in perspective just how ****ed that ladies house is in terms of bees, honey combs, size of nest, and gargantuan amounts of honey. Hell, in the second video, you find out how many bees he's vacuumed up, how many sections of bee nest he's taking with him, and how must honey he got out of the nest so far (which was ridiculous).