Texture Import settings cannot be 'reset' from inspector context / cog menu.

Expected:
Using 'reset' in texture importer's context / cog menu should revert import settings to original/default import settings.

Repro:
Import a texture.
Change and apply import settings.
- "Reset" through context/cog menu on texture importer heading does not revert the settings.
Observe that nothing is reset.
Also, in Unity 3.5.1, pressing Reset will mess up the Inspector and the error: ArgumentException: May only be called in OnPostProcessTexture is printed in the Console.

Workaround (first attempted fix):
- Deleting the texture from the project panel and reimporting manually resets to default settings..