Indeed, it’s very good now. Video tutorial of the advanced reverse feature.
Will the A-B loop backwards work for this?
Assuming I understand what you mean: yes. See video above your post starting at 2:17
Since this was closed, response to post below me:
Most video editors probably cache re-encoded video to make this possible without visible encoding. They are mostly great at hiding that so users don’t notice.
For some type of editing, where someone is playing with many normal and reversed clips, this approach (converting each segment into a separate file) is very annoying. All serious nonlinear video editing software I know (Premiere, Sony Vegas, Corel video Studio, and even OpenShot and Cinelerra), can handle this task without reencodig, which slows down very much the workflow. It is regrettable because the interface and other aspects of Shotcut are very promising. Hopefully in the future this will be resolved somehow.