I'm still very worried about the molarity of it, as I see it the resetting amounts to mass-murder.

This is a little bit difficult to gauge. It seems like it should be roughly equivalent to a surgical memory alteration during cryogenic stasis or something like that, since you're essentially starting the thing right back up again after removing some of the memories. In fact, I don't see why you can't just do a memory alteration and bypass the reset altogether, given that it seems desirable to retain some parts of the memory and not others.