I see both sides to this argument, honestly.
It is wrong to say someone cannot use their resets as a basis for their RP; meanwhile, the resets are producing a plethora of people who are extremely OP. The reset cap and the 'RP cap' are incompatible. Except in Madara and Obito, we do not see people running around who have a Sharingan, a Rinnegan, can open the Eight Gates, and can use Mokuton.
Let me put it into a metaphor.. I like metaphors.
I am an artist; I draw bio pictures for people. I'm not bad at it; back in the day, my base price was 1000DP. Taumaster utilized my skills all the time. Back then, I was drawing a HUGE variety of characters, big and small, thin and fat, with rainbow colored hair.
Nowadays, since the rise of "Mega-Gaming", I draw the same character over-and-over.
While the resets show "hey, I know how to level", they aren't a good indication of "hey, I know how to RP." The RP aspect of SL and the Forest aspect are two distinct things, but they certainly should cooperate.
If there were an understanding that the resets were more like badges that say, "hey, I've been around for a while" rather then, "Oh, I automatically can shoot trees out of my hands", we'd have a more varied RP. Variation is good, in my opinion.
I look around and, for the most part, character bios of some big RPers are indistinguishable from one-another. I would bet money that we could throw 90% of RPers on SL into four or five basic categories--that remaining 10% are those of us who have been around long enough to know that a master with a stone can best an amateur with a cannon.
I've spent close to nine years building my character; he's been a WIP for much of that time. I'm a shark-man who, having lost his arm, wears an anchor as a prosthesis. Back in the day, I RPed plucking the Byakugan eye from one of the members of the old Hyuuga Clan that used to be led by Kite and transplanted it. With my luck, though, I went blind in the other eye.
A middle-ground ought to be established; right now, there are too many RPers who've allowed the resets to go to their head. The resets should be a privilege and a goal, but the way they interact with RP shouldn't be automatic, nor should it be transferable, nor should it be 'uncapped' so to speak. I haven't any problem, if you do in fact have all those resets, with you claiming to have an implanted Sharingan and being a Mokuton user. But c'mon guys, for who is it fun to become just like everyone else?
I remember back when a few of these accounts, who now have many more resets than I do, were acads. Hell, by the time a few of them came into being, I was RPing committing suicide because I couldn't handle any more Sharingan/Rinnegan/Mokuton/Gates people running around.
I have a story; every cookie-cutter OP account that runs around might have a story, and it might be 'unique', but in the end... they are just like everybody else, and they let it go to their head. I've fought a few of these cookie-cutter nin; half of them don't even know how to use the English language to portray a simple thought.
There are more issues on SL than just the resets, but.. the way resets and RP interact currently is a problem, in my opinion.
Excuse the length of this reply.