There is a strong argument for having this on by default, even in dynasties where it would seem broken. If enabling the rule in this dynasty would enable some particular exploit (“I spend all my money on Meddlings, reset, and then bet high on those same events!”), that exploit is likely already there for a two-person team.

Sure, but why make it easier?

It focuses the mind. If some mechanic feels unfair under the shadow of Reinitialisation, then it’s already even more unfair if a player has a stooge who’s happy to arrive with default stats, take the fall and idle out. It serves as a reminder that we should pre-empt that kind of exploit rather than complacently assume that it probably won’t happen.