Russell's paradox didn't "destroy" Frege's life work any more than it destroyed Russell's own life work, or set theory in general. Of course it was a problem, and everyone came up with their own workaround.

I should say that I don't agree with the OP's opinion that Russell is "not great", but there's no need to exaggerate Russell's importance in order to prove it.

Not to mention that the Nobel Prize in literature isn't awarded for philosophical achievement, so that's largely irrelevant.