It is definitely okay to reset your town, but maybe you are hesitating for some reason. Do you love your layout or your villagers? Then maybe buying a new cartridge and starting a new town that way is the answer. That's what I did. I put my first (kinda boring and unsatisfactory) town to "sleep" for a number of months (you know how to do that?) while I worked on my new second town with all the knowledge that I had gained on my first. I absolutely love my second town of Elenrast and it is complete and (practically) perfect, imho. (You can see it at my DA

)
When Elenrast was finished, I went back to my first town, thought about it, didn't want to try to get my favorite villagers all over again and liked my map, so I did a fresh start. Erased all paths, chopped down most trees, dug up bushes, demolished most PWP's and completely redid the town, which I now love, also, though it is not complete yet. I even gutted the mayor's house down to the bare floors and walls (meaning I removed even wallpaper and flooring).
Warning! Buying a second cartridge might launch you onto the "slippery slope," as TBT member hoodathotit aptly calls becoming the mayor of multiple towns! (I bought my third cartridge at Christmas...haven't opened it yet, but soon...)
Blessings!