I would like to have a an option where we can revert all the option and go back to blank home assistant. It would be very useful especially for these who have a test env.
You can already do this by nuking the /config directory.
I believe he means need a UI/GUI button for “Restore Home Assistant to factory default settings” in the frontend for HASS/HASSIO installs just like there are such “factory reset” features available for most appliances as ex. smart phones/tablets/televisions and network routers meant for home use.
I think that is a good idea for the GUI frontend of Home Assistant OS installations if Nabu Casa plan on selling Home Assistant Yellow boxes as a pre-installed home automation hub appliance in retail stores.
Such a "factory reset feature is really expected in all smart appliances sold in retail stores today.
While this is not a feature that experienced users of open-source software might not expect to exist in the GUI/UI I do think that it is something that buyers of retail appliances do expect to see in the GUI/UI.
https://www.home-assistant.io/installation
https://github.com/home-assistant/operating-system
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This is exactly what I meant.
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As long as this is hidden in some weird dark places, it is fine 
but as @firstof9 already pointed out, doing it is already pretty straightforward, right?
I see, could potentially be useful, but very dangerous as well.
I do already struggle with factory reset on yellow 
On the server I just restore full VM backup and done, on os running directly on hw it is not that easy.
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where can i find instructions on how to do this? on the pi it was just a case of pulling out the sd card, popping it into my windows pc and reformatting the card using etcher.
on my HA blue, I’ve moved house 12 weeks ago and spent countless hours researching and am still working out how to get rid of old devices, databases …
at this stage, it looks like the only practical option is to trash the blue and revert to the pi. if HA had a factory reset it would mean that people don’t have to throw away otherwise perfectly good hardware.
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Any information on this would be great, I’d like to reset one of my servers running HAOS directly installed on a raspberry pi.
just delete the contents of your config folder (including hidden files) and restart. Reboot manually worse case. HA by default will build the files.