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Help Is it recommended..

You shouldn't need to, but it won't do any harm. I've never done one after any of the updates I've got though.

Are you having an issue with an OTA Update?
 
Try clearing the cache and data associated with Sense in the apps menu.

Settings -> Applications -> Manage Applications -> All -> Sense -> Clear Data & Cache.

You'll lost stuff like home screen info (widgets/app shortcuts and some settings etc), but it will be a lot less than you lose if you do a full factory reset.

For what it's worth, I gather there have been some issues with the Incredible update, you might want to have a look through here: http://androidforums.com/htc-droid-...gerbread-2-3-here-then-gone-now-its-back.html
 
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