I reset my phone today to test the feature and I am very impressed with it. It restored everything perfectly except the grid size of the app drawer, I had to do that myself. All apps, settings, wi-fi networks and passwords, home screens with all shortcuts, widgets and folders that I created, blinkfeed and pretty much everything I normally spend hours re-customizing after a full reset. Text messages did not restore (I didn't think they would) but I had them backed up to my Handcent account. Bluetooth pairings also did not get restored but that's easy and fast.
Overall I am extremely impressed, it made doing a hard reset quite painless compared to what I usually go through.
I believe that the restore should also work on future versions of HTC phones so if you upgrade to a newer HTC you can restore all your apps and settings to the newer HTC device.