Yes, 'Deleting your Avatar', really is 'Deleting them!'...
For those whom are not sure what UUID meant, basically an Avatar is really located by a 'unique' string called a UUID and then a name attached to that. Deleting an Avatar from the Toolbox then recreating makes an entirely new 'unique' string, and so even with the same name, you will be a New Avatar, and nothing owned/ created by the previous Avatar of the same name will be owned by the new one.
Sakai Openlife 