To be fair, they didn't reset the game. People who were experiencing game-breaking glitches had their town set to a default state for the level they were currently at, and got all the donuts they had spent refunded. And everyone who was playing the game at that time got the sixty free donuts.
Now, some people lost some progress, no denying that. Mostly people who had expanded their town borders beyond what the default configuration they were reset to. But no one lost levels and it only affected people who were experiencing a game-breaking glitch (I believe the one where purchased land expansions became unpurchased).
I have never made but one prayer to God, a very short one: "O Lord, make my enemies ridiculous." And God granted it. - Voltaire
I was pretty pissed when it happened. My game got glitched and I lost a bunch of land expansions that I bought, so I rebought them, then lost them all when they did the reset. I also lost a buttload of blue houses which were worth a lot of money. They really should have let people choose whether or not they wanted to reset.