Always good to do a quick search of the literature to make sure your intuition about something is actually correct; I too thought "no way" when I first saw your question.
I don't think only heating water to 500C would remove more harmful chemicals than a typical full treatment process, as they have a lot of steps to filter various things out, but I don't have a source for that.
Even if it did, there's still the issue of heating up the water taking an enormous amount of energy, which is probably a dealbreaker. My local wastewater plant treats 40 million gallons a day, which by a quick calculation would take 150 GWh to heat, 83% the daily energy consumption of the whole of Minnesota. That can be reduced significantly with heat exchangers but even 1% of that would be far too expensive.
I've never heard a nuclear bombing described as a supernova, but you do you?