Grandmaestro: I disagree (respectfully)...
A lot of my ratings have got pretty low at times, but I like to fight back. The way ratings work is that, as your skill improves, you can always climb up as high as your skill takes you. I enjoy that fight. It would be misleading if you just "reset" every time you lost a few games. Right now, my goal is to get all of my established ratings back over 1500. I think that the reset idea isn't valid.