Deleting the dynamic playlist shouldn't brick anything, 'cause all it's doing is deleting the playlist and replacing it with a new list, either from the files in the folder you selected a file in, or the list of files shown in the database under whatever category you selected, or from a saved playlist you selected. The change for warning when deleting the dynamic playlist was made for version 3.1, before it never used to warn by default (the option was still there, under Settings -> General Settings -> Playlists.)
I'd recommend making sure your H320 is fully charged, then giving it a go again. If it continues happening, you may want to file a bug on the Flyspray tracker, and/or disable the warning and see if it still dies when automatically replacing the list.