Yeah, I think that definitely helps with some of the issues of resetting, but it's still fairly limiting. I believe it was done in an effort to get people back into the game after not playing for a few years. (I do think this was a good idea, though.)Well if you remember back in New Leaf Welcome Amiibo there used to be a feature when you wanted to delete your town, but you can actually sell your Town to Tom Nook as long as your plaza tree was big enough for it to work. Tom Nook calculates all the items you cataloged and of course how much stuff was done on the island in terms of public works projects. So when you delete your town all the Bells that your Town is worth we will be transferred to the ATM so that way when you're in your new Town you can use those bells to rebuild the town.
As for DLC I mean if thats the only way they can solve this issue then I suppose it can work and it would be nice to travel to your old island and new island. Of course it is possible to do that if you have two switches but I heard its a lot more complicated to setup because it must be 2 accounts having an online subscription. So there's that.
The system I described, though, would just give you another island for your players to visit--a reset wouldn't be required. You'd be allowed to travel freely between them, and your resources would just be tied to the player as usual.