No, this is not adding a new version of resetting a device, it's just providing a mode where if your phone is bricked you don't need to find a computer and cable to get back to a working state if you're with someone else who has an iPhone.

The thing the limits the resale/theft value of an iPhone is activation lock - not the ability to reset the device. Resetting or restoring an iPhone does not remove activation lock, and this does not change that.