There are reasons and justifications for that and some games certainly got the balance extremely wrong. The example I've used was having both a limited lives system and a timer system that gives you a hard game over even if you have lives being extremely punishing.Irony being, back in the day (1980s), games wiped your progress: 3 lives then high score; start again. Elite changed that - no 3 lives/high score; you explode your progress isn't wiped. So not sure any "rule" of game design" can really be discerned, unless its a "currently some/most games do X and this does Y".
Elite Dangerous in 2022 isn't subject to the limitations that made those designs a good idea back in the 80s and it doesn't have a good enough justification for how the reset makes the gameplay better.
The games that do have periodic resets or resets as part of the gameplay loop in the modern era don't do it in a way that feels arbitrary - its a deliberate part of the design that enhances the experience. It's extremely unclear how that works in Elite.
There's also very few games that associate resets with negative motivation successfully - usually you gain strength or knowledge between attempts and start the next run either at the same place or better off than the last one.