Of course you are correct, it was a reset for the vast majority of people.
If we for a brief moment fly with the fantasy, imagine TBC released 2 months after vanilla Naxxramas, it'd have been called progression instead of reset maybe
Anyway I understand the feeling, but after all, do you really want to keep your gear forever? It annoyed me in EQ to be honest. Oh hell, it could have been made more relevant in case of special stuff, like vanilla weapons or legendaries (especially legendaries), but their plan was to make sure anybody could pick up the game in no time and be on par with other players.
Today you have a fuckton of clickies in WoW, but none of them really alters gameplay: bank, repair, travel gadgets, illusions, etcetera. Hell an engineer rivals a mage in terms of available port locations.
EQ items were definitely memorable, you kept them for all your EQ life: Jboots were slower than SoW (35% vs 55%), but still amazing, Staff of Temperate Flux was a must have for any wizard with its instant cast ranged debuff that was used to pull the typical 4 mobs, FB earring, Goblin Skull Earring for a junk buff, Coldain Ring and Coldain Shawl in Velious, Kunark Armor or other special pieces, JJB for shamans. Damn I remember a lot of them, but they are too many to list