My suggestions in the point of reset based on town visit was more for players in Standard, that after dieing, they start in Town (they usually dont chicken), but this feature is already implemented in EB, "after x deaths, reset instance". Therefor, i think only reset instance after login would be needed (more for HC players) . . .
Another approach would be to tell EB to just advance to next zone if we over-leveled the current zone by x levels, by doing so, we would make sure that once we advance to next zone, we are like for example 2 levels over the zone level, therefor minimizing the chicken chance . . .
Just throwing ideas