Do you lose anything when reforging your weapon/armour class? From what you have previously said, our power level will primarily come from this class level after the update instead of directly from the weapon.
Does resetting it mean resetting that weapon class back to a lower power, making us weaker until we level it up again?
That is correct, you will go down in power and have to level up the class again. This is a mechanic a few other games have used very successfully and we think it plays really well with the new Hunting Grounds since our islands are way more engaging than the pursuits/patrols. We're still finalizing how long it'll take to get back to level 20 but a skilled player should be able to do it fairly quickly.