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For those of us who remained with NE, when everybody else including members of the staff jumped ship, that would be a tremendous slap in the face. If I wanted to start over, I would have done so elsewhere, when everybody else left two years ago.
Resetting everybody's characters, guild banks, gold levels, and gear sets gives zero reason to return to NE. Everybody that left moved on. They either returned to retail, or found another server with a better "core". Nostalgia alone isn't enough reason to return to NE, especially if people have to start from scratch.
NE's biggest problem is the core. It's not customs, or people controlling the auction house. It's the codebase underlying the server that was problematic at launch, and has only gotten worse as other server development surpassed us. The only thing NE can do is fix the core. A core that needs to at least approach that of "the District" or "the Mane". If that can't be achieved, than NE might as well remain as it is. ICC remains bugged, not to mention Ulduaar and the rest.
NE's strength has always been the community. A community that I have personally tried to keep afloat with Defenders Of The Crown. When the other guilds left or stopped trying, we ran every working weekly raid we could. We were the last guild to have members donate. We remain the only group who has been loyal to NE.
The complaints remained the same from people leaving. Fix the core. They weren't complaining about customs or stacking. Several members that I still talk to would love to return for "old time's sake". When they heard about starting from scratched, all of them used a litany of expletives not fit for publishing here. The kindest response I received was, "That is absolutely insane. Why would I leave my current server, where every raid works, including the classics, to return and start from scratch on NE."
Bringing people back is the easy part. Keeping people after they return is the hard part. NE would have to offer a product leaps and bounds better. Making people start from scratch will make them even less forgiving. Having everything they worked for remain provides incentive. Losing it means why bother. Especially if the core has unresolved issues.
I really hope you do not implement a total reset. My gut feeling is that this is exactly what will happen though.