There are difficulties in making a replay system rewindable, but I do think the problem this causes in league races and post race "debate" means it should be a high priority.
As a programmer myself I can understand how doing the physics backwards is just about impossible, you can only reverse a replay if you take out the physics calculations.
However it is not terribly difficult for them to put in a "keyframe" every 30 or 60 seconds with "all" data that could be used as a starting frame.
This could (I dont really know as it involves knowledge of the LFS engine) require a lot of time to generate ingame, but could be done whilst watching the replay. If it works out so slow it causes a pause we could maybe have a key to press to generate a keyframe and another key to rewind back to it.
In any case making a keyframe system isn't impossible and would be a perfectly adequate solution, where-as a truly backwards running replay might be a bit difficult - depending on how the LFS engine works.