No, Graham just got an awesome mask out of the whole ideal, lawl. They didn't show Setsuna, but if Graham didn't die when his mech totally exploded, it would be ridiculous if they ended up killing the main character when he only took half as much damage. Setsuna was probably on an island having sex with Feldt for four years.
Also, in his shitty basic flag he was at least able to tie with Setsuna in the begining. With this super improved flag and his epic beamsword, he should have been able to destroy Sestuna easy, especially after Setsuna was almost completely out of G.N particles. It just goes to show how insane and loony Gundam has made Graham, as it's all he thinks about now. Setsuna and the Gundam organization really messed him up a lot.