The “Reset Character” button comes from a time when players could potentially become stuck inside holes or obstacles without any way of escaping. Players used to have to exit out of the client and rejoin the game (which greatly disrupted gameplay flow and could cause them to lose their progress in a game).
Today’s games are much more polished and refined. A player who resets in my game will unfortunately face consequences related to death which they did not intend. Many games (i.e. Tiny Tanks) do not have traditional characters or are even possible to get stuck in.
While there are hacky ways to prevent the button from working (renaming the humanoid), developers should be able to remove this option from the menu all together to prevent confusion.