Suppose you get a botched firmware upgrade. Considering that we didn't get (yet) a tool to 'flash' the firmware, I think it's good that we have a possibility to start from a really clean slate and retry it again (or do the upgrade differently).
Also, it actually takes the 'factory reset' more to the letter

Anyway, you can e.g. open a proposal on Together and ask to have e.g. two levels of reset (if that's possible, as it works with btrfs snapshots), one that wipes only users settings and another one that brings the device back to original f/w.