why would you want to go with a godaddy reseller as opposed to godaddy? i have seen this issue too many times in the forums. someone goes with a small unknown registrar because of their cheap fees, then they end up getting hosed some way or another.
you get what you pay for
When buying through a reseller, it's not normally a situation where you're choosing between GoDaddy and the Reseller. So to answer your question, they wouldn't because a Reseller can't compete with GoDaddy's products or prices for obvious reasons. I don't think there are any reasons why someone would choose to use a Reseller versus GoDaddy themselves.
Resellers are not direct competitors to GoDaddy, the customer expectation/audience is different. GoDaddy is product centric but Resellers are service centric. A Reseller is usually offering domain and hosting services as a convenience and add on to their web design services, rather than as the primary product.
The overwhelming majority of GoDaddy Resellers are web designers, developers, and agencies. Here are some of the benefits they get from becoming a Reseller.
1. They can be a one-stop shop, more convenience for the customer.
2. Avoid having to refer them to another company who might make them look bad
3. Manage the domain and hosting for the client while having the option to let the customer manage it themselves.
4. Offer 24/7/365 Live support for the website and questions (GoDaddy whitelabel support)
5. They can price domains and hosting however they like so it's an additional source of revenue without additional sales or marketing costs.
The issues that you read about in the forums was not about resellers. They were probably referring to buying from small businesses. The reason it's bad to buy domain registration and web hosting from a tiny business is because that business owner could get hit by a bus tomorrow and die, among other reasons. If they manage your website, and they no longer answer the phone, you're screwed because you no longer have access to your site. It's the same when dealing with web designers who will handle your domain registration and hosting for you for convenience. If they get sick or hurt, you're screwed.
With the Reseller program, you don't have that problem because in the event the reseller dies or disappears, all services, phone numbers, website, emails, etc will automatically transfer over to Godaddy by default so you'll never be left hanging with no support or options.
Hope this answers your question.