Why would you set the reset at the input state of FSM to 1?
To bring the machine to a known state.  Without a reset, on power-up the internal state of the machine would be random.
So your &quot;save the world&quot; state machine, which should come up in the &quot;check if all is well&quot; state may come up in &quot;nuke the commies&quot; state, and start world-war III just because of an easily-avoided design flaw.