While I would enjoy the feature to completely get everything perfect in a replay by rewinding mid game, I don't think it's very practical. First, when I make a replay and one of my ideas doesn't work... we can say I'll have lots of rewinding to do. Unless your going by the amount tf you went forward (Which would be unpractical for people playing with 1 tf per space for a replay), you can still very easily over shoot.
Second. When your making replays and something doesn't work because of timing, it's better to start at a complete different tf then to go back to your previous tf. Timing is always key when replay making. Just making something earlier or later in when you kick/punch/ whatever you do can make a severe difference.
Third(More of a personal problem). I would be constantly be using this feature because i'm a perfectionist when it comes to this. I would try to make everything perfect and end up screwing myself. It's better for you to finish the replay completely and then look at the glaring mistake and fix those.