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I think I was misunderstood. I didn't mean the reset state at all, but rather the "unreachable" states (holes in the encoding) that can be reached because of timing or SEU (radiation) glitches. The "safe" setting ensures that logic is generated to transfer the machine into its reset state if such an "illegal" state is reached.
Previously, Altera said it's ok to just specify "when others" even when all the states have been covered in the case statements. Now, they've changed it, saying that Quartus will optimize away such code, and one should use the safe setting instead. This is what bothers me.
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I understood you. I make a distinction between unreachable code and having state reset. I am saying that the major issue is at power up which could go into illegal state. One way to avoid that is use when others, the other way is use reset. Using both is excessive...thats what I am talking about. I presume quartus doc is talking in the context of having reset and when others which is then optimised away. If there is no reset quartus wouldn't know into which state it should transition in case of illegal state.