I think what you've done should be all you need to do. The problem is that some settings may have been partially cached, so just make sure to fully close the app, then start it back up and then you should have an experience that matches the default. I am surprised that you didn't see the annotation settings fully reset though, because MobileSheets should cause an app restart after you reset the settings, and the annotations editor should be reinitialized.
Mike
Mike