The two are not mutually exclusive.
Eternal damnation for those who reject Jesus, restoration of all Creation for those who believe and obey Him.

Both of these concepts are found throughout the Bible and they are not an invention of men centuries later. (This is not to say that the Popes did not make up a whole lot of stuff not found in the Bible.) But here is proof that the concept of eternal destruction have been in the Bible from the times of its writing:

“They will suffer the punishment of eternal destruction, away from the presence of the Lord and from the glory of his might” (2 Thessalonians 1:9).

“If anyone worships the beast . . . he will be tormented with fire and sulfur in the presence of the holy angels and in the presence of the Lamb. And the smoke of their torment goes up forever and ever” (Revelation 14:9–11).

And as Jesus told his disciples explicitly on the Mount of Olives:

"When the Son of Man comes in his glory, and all the angels with him, he will sit on his glorious throne. All the nations will be gathered before him, and he will separate the people one from another as a shepherd separates the sheep from the goats. He will put the sheep on his right and the goats on his left.

"Then the King will say to those on his right, 'Come, you who are blessed by my Father; take your inheritance, the kingdom prepared for you since the creation of the world. For I was hungry and you gave me something to eat, I was thirsty and you gave me something to drink, I was a stranger and you invited me in, I needed clothes and you clothed me, I was sick and you looked after me, I was in prison and you came to visit me.'

"Then the righteous will answer him, 'Lord, when did we see you hungry and feed you, or thirsty and give you something to drink? When did we see you a stranger and invite you in, or needing clothes and clothe you? When did we see you sick or in prison and go to visit you?'

"The King will reply, 'Truly I tell you, whatever you did for one of the least of these brothers and sisters of mine, you did for me.'

"Then he will say to those on his left, 'Depart from me, you who are cursed, into the eternal fire prepared for the devil and his angels. For I was hungry and you gave me nothing to eat, I was thirsty and you gave me nothing to drink, I was a stranger and you did not invite me in, I needed clothes and you did not clothe me, I was sick and in prison and you did not look after me.'

"They also will answer, 'Lord, when did we see you hungry or thirsty or a stranger or needing clothes or sick or in prison, and did not help you?'

"He will reply, 'Truly I tell you, whatever you did not do for one of the least of these, you did not do for me.'

"Then they will go away to eternal punishment, but the righteous to eternal life." (Matthew 25:46)

23 out of 25 translations (http://biblehub.com/matthew/25-46.htm) refer to it plainly as "eternal punishment."

And this is how it was explained to Daniel and Isaiah over 500 years BC:

"Now at that time Michael, the great prince who stands guard over the sons of your people, will arise. And there will be a time of distress such as never occurred since there was a nation until that time; and at that time your people, everyone who is found written in the book, will be rescued. "Many of those who sleep in the dust of the ground will awake, these to everlasting life, but the others to disgrace and everlasting contempt. "Those who have insight will shine brightly like the brightness of the expanse of heaven, and those who lead the many to righteousness, like the stars forever and ever.…(Daniel 12:1-3)

"Then they will go forth and look On the corpses of the men Who have transgressed against Me. For their worm will not die And their fire will not be quenched; And they will be an abhorrence to all mankind." (Isaiah 66:24)