Hello,
Regarding contact emails on the same server, it's never advised to use a contact email on the same box, because if the box goes down, or say his email accounts aren't working, there isn't any way to contact him. I understand some people will do this anyway, can't really get around that, which is why we have the "Creator Duplicate" emails that get sent out as well, so you also get a copy and can forward it to him if he doesn't get it.
Also, if you go to the MySQL Management page, click a database, you'll notice that nowhere on that page is the system account listed. This is because it's a very bad idea to use it in your scripts, mainly for security reasons. Users are not supposd to ever use it in their scripts. The whole point of being able to create extra mysql users, and why an extra mysql user is created when you create a database, is so that you don't have to use the system account in your scripts. Storing system account passwords in a word-readable php file is a very very bad idea.
This will help with that, but I urge everyone to not use system account password for their database scripts, use a different one, that's why they're there, and why the system account is hidden. System account mysql really should only be used for things like phpmyadmin, in my opinion.
Regarding to the change, would it work if we were to provide the checkboxes like at the User Level.. but for Reseller/Admin Level password resets? This would allow you to select which bits you want to reset.
John