Consider the context of the Stern-Gerlach experiment. As is stated on numerous sources (e.g. Feynman Lectures, MIT Lecture), a silver atom in the state of $\vert+z\rangle$ that is put through a Stern-Gerlach apparatus in the $x$ direction followed another apparatus oriented in the opposite direction will recombine the two beams and restore the state as $\vert+z\rangle$.
My question is why shouldn't the new state be the mixed state given by the following density operator? $$\rho = \frac{1}{2}|+x\rangle\langle+x|+\frac{1}{2}|-x\rangle\langle-x|$$
Now, consider the scenario where I have a friend standing in between the two $x$-oriented Stern-Gerlach apparatus to observe that individual atom's $x$-spin, but does not tell me the observations. Clearly a measurement has been done, so why shouldn't I use a mixed state from that point on? Now what if I don't even know if anyone is standing between the two apparatus making an observation?
In general, the density operator of the full ensemble after measurement, when not knowing the measurement result, is given by $$\rho'=\Sigma_i P_i\rho P_i$$ (source: Wikipedia) where $P_i$ is the projection oeprator onto the $i^{th}$ eigenspace. Why is it that this new density operator is not applicable to the case of the Stern-Gerlach scenario above where I throw the two beams back into a single full ensemble? When is the new density operator applicable?