What to do about my low initial rating? My initial rating came out to be 1166. At the time I played the games against the rated players, which gave me this rating, I did not know much about the rating system and would often agree to draw with lower rated players. But now I see that it will be really difficult to improve my rating even if I improve my play, as defeating higher rated players will not give me much of a push. Can I reset my rating and become unrated again? What can I do?
I think you are too obsessed with ratings in general. Try to not think about your and your opponents' ratings and just focus on playing a good game. 

Ratings only get important:


if you want to get a title such as IM, GM
if you want to be invited to some (usually high level) tournaments
for prestige, e.g. if you want to teach chess for money


In any case you are very far from these and the only effect your rating currently has is that it affects pairings in (some) swiss tournaments. But if you play much above your rating, winning the first few rounds you would soon be paired to stronger opponents anyway.

A rating of 1166 is rather low and if you do improve your chess you will automatically also improve your rating. For example if you play at a level around 1800 you should be able to gain around 50 rating points in a tournament. (this rating gain will slow down as you get closer to 1800, unless you increase your playing strength further).