It doesn't matter which copy you have in the drive when you boot up first. The first scan just checks to see if the disc is 1st party or 3rd party (and the region).
With your method, you will need to make sure the "backup" and the real disc are either both 1st party, or both 3rd party. With Racket boy's method, it doesn't mater.
The saturn scans the inner ring (the boot sector) to read the developer's ID, then reads the outer ring to make sure the tone matches the developer (there are two tones, one for 1st party and one for 3rd).
As for the reset button, when you press reset the system doesn't actually power off. The system still keeps track of what disc is in the drive after a reset (it assumes it's the same disc until you open the door). In this case, all hitting reset does is give you a longer time to swap discs (which isn't really a bad thing). When you hit reset, the system doesn't scan the inner ring again until you open the door, which it can't do in this case since the sensor is taped down.
Overall not a bad methodology, but i would still recommend having the original disc in first or you'll have to keep track of 1st party vs 3rd party titles.
As a side note, anyone who is going to use "backups" frequently should just spend the $10 on a modchip. You'll grind your motor into dust if you keep swapping discs out like this.