It sounds like you're asking for a rebirth system, I wouldn't have a problem with that if it was 2007, but unfortunately this is a kind of system that is frowned upon in modern day game design.
Its an interesting idea (And well thought out!) but I haven't found a game that handles this kind of system well, its definitely good for re-playability but it adds a need to reset your character to reach endgame "Meta".
Basically a rebirth system is replayability plus a buff with no added content.