I migrated from a C7 to a C8 over a year ago. Now I want to pass my C7 on to someone for them to experience the world of Habitat. I know the full reset option has been removed so how do I do a factory reset so it is like setting up for the first time for the new user? Also should I deregister the hub with Habitat before or after the reset? Thanks for the help.
That is no longer the case. 
See the full reset info in the linked section of this document:
That being said, unregistering it and soft resetting it plus doing the radios, also described there, would do basically the same, and the former is the only thing someone else wouldn't be able to do on their own.
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