A character reset won't fix the HOTAS issues...just the duplicate ships. All it does is reset your character and inventory to a previously stable state, you'll still (hopefully) have all your cash and equipment although there's a chance you'll lose something or everything. Like Sovapid says...it's an extreme last resort for issues that are game breaking, it won't fix issues with your HOTAS bindings or game setup since that's all stored client side. The character reset isn't a fix all solution...far from it.
I'm fortunate that I've never had to reset, but like I said...never say never

I have the duplicate ship bug in PTU but not in the PU...which isn't an issue since the PTU build will be updated every few days anyway. Those duplicate ships are strictly a server issue...a well know one as well, previously 'fixed' on several occasions in various patches when they sort the adjudication or transaction servers out. It's strange that it's now happening in the live servers since it reared it's ugly head in the PTU servers...it was fine previously in both.
I have a sneaky suspicion that it's tied into Ci¬G giving making all the currently flyable ships available in the latest PTU builds (like every single ship and variant)...it seems every time that they do that during PTU, folks have issues with duplicate ships in the live servers.