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As for soft vs har reset, both have disadvantages. Ranking up takes skill AND time. With a hard reset you'd have lots of good players in the lower ranks for a very long time.
Not only that, but for most people, it's simply not fun to steamroll after like 10 games. People go in rank to fight people of their own skill levels. If Champs now have to face silvers/gold for 2 weeks, they will lose any motivation to play.
*I'm saying "Champs/GC", but this apply to basically all ranks.
Your buddy made a dumb thing, and now he will pay for it. Unfortunate, but learn from this. Best advice I have is make a new account, or deal with it.
And as far as my buddy living with his mistake. He's mostly oblivious, it's all his friends who are really paying the price. We never wanted to play with champs. All in good fun though.
But that's just an example. Who you are playig against matters a lot in this.