I have done exactly that today. Removed everything from my home, Apple TV's, HomePod Mini's and masses of EVE accessories and Philips Hue. I then delete the Home and created a new one with a different name. I then reset all of my devices and added everything back again. It was fine for about 6 hours and then I started getting HomePod Mini's reporting that they were unresponsive.
I've got a great deal of HomeKit equipment - all of it up to date with Thread Support and I actually had to replace my Hue Lightbulbs with dumb ones last night just so that I could turn lights on and off.
By all means go ahead and zap everything - Apple will probably suggest it - but it didn't help me much.
It maybe purely coincidence but the problems did start occurring very soon after I added my Philips Hue kit into HomeKit.
I have logged a support ticket with Apple and I think everyone needs to so that they do understand how much of a problem it is.
I was one of the few who upgraded to 16.2 and then took the option to "Upgrade" to the new Home architecture before Apple pulled that option due to feedback / problems.
I suspect I'm stuck on the new architecture now.
Dave