Today I tested the reincarnation on my lvl 17 Sorc. Here's my input
Pros:
Respec of Stats and Skills - Got more HP and Skill points with the changes in my stat allocation
Respec of Spells - Woot, woulda been expensive to swap out all the spells I wanted to. Plus would have taken a month to do so.
XP and Favor - Still had all XP and Favor. While it was a pain to have to talk to all the favor NPCs again, I did get more Ingredients bags (small and Large)
Explorer Areas Reset - Kill Counts, Explorers and Rare Encounters all set to 0. More XP.
Equipment - Still had everything, but only had 3 back pack slots so couldn't see everything until I offloaded stuff or got my 5 slots back.
Cons:
All quests have been reset -

Have to re run all the flagging quests to get raid ready for Titan, DQ, Shroud, Reaver, etc... This is a BIG pain and questionable if it is going to be worth it.
Favor Reset - Had to retalk to Favor NPCs and spend portable hole and gold to get my 5th backpack slot.
Indifferent:
Leveling - meh.. teadious but I guess it's needed this way..
Change Looks - kewl if you want to look different I guess. Sucks if you bought hair styles or colors.
More to follow.