I wouldnt be against "resetting" our characters. It is way more fun to play a weaker character, that overcomes chalanges, because of his or her weakness. If we are not so insanly strong we need to think of new ways do defeat a monster instead of just beating it till it stops moving. That way this Rp might get a bit more intresting as the fights will propably be way more difficult and a little longer as some strategys might fail.
So yeah. Overall nice idea. I like it. Will evrything be resettet(armor, weapons,...) or just our stats?