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I haven't exchanged anything yet, but it seems like you trade your old Item for a 2.0 version with no exp. I think the intellect, discipline, or strength also change to the new Item's value(could be lower or higher than the original). If this is right, could you trade in a 2.0 armor just to upgrade it's intellect?
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Exchanging old exotics will reset the progress. You will need to level it up again.
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But lvling the new exotics is faster
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Yea you gotta relevel all your perks but you start out at higher base damage than you had with it maxed out so definitely worth it