Can you explain what user data you want to be “reset”? Do you mean you want to reset certain profile and/or custom user data fields, or do you mean you want to reset everything? If it’s everything, well then you’d be effectively destroying that user. So yes your approach would then be something like:
That being said, you’d probably be better off keeping the initial user account, and just resetting the specific parts you want to change. This will make your life easier if the user’s old ID is linked to your data anywhere. You can change/update just about all parts of a user record through the Accounts API, while preserving the user’s account.