Originally Posted by Nidisa
Everything comes back, except apps you downloaded that were free. Paid apps will show up in Market/downloads. You will have to reinstall them. Your specific settings/notifications will have to be reset, as will the way you have your screen set up. Just recreating it, takes a bit of time but nothing is "lost" for good.
Your free apps may not have come back after reset, but mine did. Your icons will have to be placed back on the desktop, but the software gets reinstalled without intervention. I still haven't figured out what initiates the "Backup my settings" feature...may be done once system notices change or when GMail syncs.