I thought the reset worked fine because it was NOT a reset. Yes, most of the world had no idea what happened. But who cares about them. It did not erase the memories of the Doctor, Jack, Martha, her family, the Master, and - this is key - Lucy Saxon.
Had everyone been returned to status quo, it would have been a cop out and disappointing. But it wasn't. You can't compare this to the infamous reset buttons of Star Trek Voyager - or the worst one of all time, Bobby Ewing's "it was all a dream" season on Dallas. In those cases no one learned anything, and there were no consequences. The Year That Never Was is a misnomer. It most certainly WAS, for the people who - in the context of Doctor Who - really mattered. In particular it set in motion the events leading to The End of Time.
Something else, too. Doctor Who as a franchise has shown great restraint in not doing stories that undo events like this. Stories like Turn Left don't count because those are alternate timelines and thus those events still happened. For a series to go 44 years as of 2007 and not do a major rewind, I think they were owed one.
And they couldn't have left things un-reset with the Year That Never Was because it would have wrecked future Earth events featured in episodes going back to the 60s and collapsed the whole "fixed point in time" philosophy that the show is built upon.
Alex