I do. Every update of watchOS since version 6 seems to break activity syncing between my watch and phone. So I end up having to restore from backup every time, and thus reset ApplePay.
Only possible problem I can think of is that you would trigger some of the fraud rules on Apple’s, network’s or issuer’s side as all theses parties have the ability to trigger yellow or red flows during the token provisioning. You would then probably have to call your issuer for assistance every time you want to provision new card to your device.
I involuntarily do this (annually), when getting a new iPhone every year. My iOS Wallet app resets, and I'm forced re-add all my cards (although it does remember what cards where added previously). Never thought too much about it.
On the flip side, the ability to look up your past purchases can enable returns without receipts.
The other week a store clerk failed to look up my purchase when using my physical credit card, but succeeded when using the same credit card via Apple Pay. I would have been out of luck if I had rotated my Apple Pay number.
Or perhaps your device could store previous identifiers and offer those to the vendor to lookup in their system? Assuming the vendor isn't doing something shady like building an association table between identifiers, this would preserve your privacy and let you change your identifier as much as you like.
I once had a very long call trying to explain to a very upset Mastercard person why this behaviour wasn’t an issue. I don’t think they understood.