I think it absolutely would be fun and challenging. Most players that have been playing in a world for a long time have a strong base that, through myriad means, counters a significant portion of the Blood Moon horde threat. Most players also have a minibike and know the lay of the land by that point, so they've become very efficient at looting supplies. To put it simply, they have a lot of stuff.
Throw that player in a new world with only a few prized possessions, and it's back to square one: you have no base, no map, and no stockpile. It'd definitely be more challenging than staying where you were. You're higher level, which means you can bounce back faster, but only to a point. You still need to find a wrench and get some mechanical parts before you can make a workbench, make yourself good new tools, etc. etc. You could bring a wrench with you, but that's the beauty of the toolbelt-only idea: you can get a leg up in a few areas you choose, but you can't cover all your bases.
Then consider that worlds could be progressively more challenging at higher levels. You could encounter things like all-snow worlds or mostly-water worlds: worlds that would be too challenging on Day 1 otherwise.
I'm not saying the gamestage needs to roll back to zero, but I do want to make the case that good balance would require stepping down the gamestage, as a kind of 'shock absorber' for all the extra things you'd be doing at the start.
ya been away for a while... hmmmm... wife let you out to play?
