Reset all settings

I reset all my settings on my iPod touch by tapping settings > general > reset > reset all settings and It rebooted. When turned I went through the usual (notifications,etc) and then it said would you like to use as a new iPod touch and so i tapped it and there seem to be no differences. So could someone please tell me what this did and if it is bad or not?

afaik if it aint jailbroken u cant do nothing with its firmware)) so nothing broken)) just all your settings went std mode i guess))

Thanx!