I think that people still use the language they learned with videotape when talking about DVD. They will say rewind and fast forward. The 'fast forward' or 'forward' concepts are still valid, it is only 'rewind' which is wrong, but I think it will take some time for people to come to a new phraseology to cope with the concept. The DVD application on my iBook uses the terms "scan forward" and "scan backwards" but I think they're a little clumsy.
Sure. "Back up" or "reverse" might work too. We still use the term "album" even though music hasn't been sold as single records in literal albums (like a photo album) since the 1950's. (At least I think it was the 1950's--I wasn't born yet.) The jargon has never kept up with the technology.