It doesn't actually reset settings.  Not all of them anyway. And it's not obvious how it differs from Powerwash.

 Bug 566832  improved things somewhat by clarifying things a bit in the confirmation dialog, but it's still a mess.

One possibility:
Replace both "reset settings" and "powerwash" with a single "reset" button and then let the user choose between resetting just a few key settings or doing a factory reset.

Forgive the dupe if this should just be merged into  bug 546840 , but the mocks there still seem confusing to me.