Yeah timing is important. Just a theoretical question I guess.
Graynomad:
The Arduino is reset or the BT module?
When I got the BT module I wanted to change the baud rate which required a reset on the BT module. After sending the comand from my PC via a serial terminal I reset the arduino then reconnected my serial terminal at the new baud rate and it worked. Thinking about it I'm not sure it should have worked, but that's how I think I remember it 
I agree though, the reset button is not the answer to bad code, but the device does have a reset button. Pulling the power cable and sticking it back in would have saved a few cents on the board so someone thought it important??
p.s. don't forget the immortal words... "You'l never need more than 640k". The fact that so many people are asking about it would indicate it mildly important to the community, even if that specific part of the community is a bunch of noobs.
p.p.s... got another one... having a software reset would allow the IDE to upload sketches over a bluetooth module without the need for flow control.