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After removing that launch paramater the game stopped resetting video settings and all worked out. It would appear you only need to run the game once in DirectX9 and it's set. Now all of this was assuming your issue is caused by the same culprit (launch options).
Let me know if this solution fixed the issue for you.
Eh, sounds weird, because last time it resetted options (yesterday), there were no launch parameters at all. So I had to add -dxlevel 95 once again to set DX level back from 8.1 to 9.5.
Seems like you are right, -dxlevel does reset graphics back to defaults ("recommended", marked with *). The problem is that the default graphics settings that the game chooses for my PC are unusually low. All other Source games pick near-max settings with DX 9.5, while Portal picks medium-low settings with DX 8.1. Weird.
Examining your last comment leads me to believe you've resolved your issue, am I right?
Well, yeah. Portal doesn't reset settings it's just that defaults are too low (compared to HL2, CSS etc.) which made me pay attention. It's just that I reinstall Steam with cleaning its registry folders periodically and then forget about that and I also reinstall OS about every 6 months for various reasons.