To give clarification, More so as a "what not to do"
By switching the resetswitch to ground, it would couple via the capacitor and pull the micro reset pin towards ground (actual voltage doesn't matter in this example), however if you kept that switch held, the micro pin would charge back up to VCC, meaning when you released your resetswitch, it becoming positive would couple through the capacitor and bring the reset pin to VCC + something,
Now in reality the majority of micro controllers have protection diodes that shunt out of range signals to VCC or ground, but its more a case of avoid if possible
In any case, I would not recommend this arrangement for a reset pin, and with FTDI chips being shunned by a lot of the arduino crowd these days, I suspect its relevance has faded.