Yes, termites really eat wood. In nature, termites play a useful role helping wood be recycled to the soil as humus, an organic material that provides nutrients for plants and increases the ability of soil to retain water.
Using bacteria, protozoa and microbes that live inside their stomachs, termites are able to digest cellulose, the main constituent of wood. They are extremely well organized and persistent in their search for new food sources. Contrary to what one might think, they will eat anything containing cellulose – wallpaper, books, boxes, carpet backing, drywall and even furniture.