IMO a reset for a new generation is still necessary for the industry because this is the best way to introduce new gameplay methods such as new controllers, more simultaneous online players ..etc.
PCs haven't ever reset, and the basics of controllers have barely changed since the SNES from like...1991, or thereabouts. Other than analog sticks, all that has been added to controllers are gimmicks and BS; touchpads, speaker, vibration, accelerometer and so on.
Resets have been a tool mainly for console manufacturers, because they first of all haven't been in a position where a forwards-backwards-compatible system made sense; hardware at the time was too specialized to handle such things. Second, manufacturers historically lacked the expertise to create the software layers making compatible consoles a possibility. MS had it, but they didn't join until comparatively late in the game, and back then new console generations saw huge changes compared to the previous, so there wasn't much hope in making them compatible anyhow.
The relatively recent, but weak, Wii U sacrificed a noticeable amount of power to remain hardware backwards compatible with its turn-of-the-century sibling Wii. Other consoles would have had to make a similar sacrifice to be backwards compatible, and older consoles would not have been able to run new games but at a cut-down fidelity. But today, we're in a unique position where software and hardware has both matured, the feature race has largely subsided, moore's law is dead...
We can finally have upgradeable consoles! ...If that's what people want.
This is one huge big (and probably expensive and risky) experiment. Nothing like this has been attempted before in the console space, it's an unique event, and as such, very interesting, heh!