I think its unlikely not having the potentiometer set above 0 ohms fried it. I have connected my backlight on my LCD like this numerous times. However, I don't have the model that you have so I suppose you may be correct in assuming that. Generally, the manufacturer will specify how much resistance should be applied to the backlight. In my case, according to Densitron, 2.3 ohms was recommended. Generally, if the optimum resistance is applied, the backlight will be bright, but will not get very warm until after a long period of time.
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