A big thank you to the staff for this feature! No idea when this was added to the system, but it worked for me.
I had a contact sensor fail today, then while pairing the replacement device the UI displayed a button to replace an existing device, making for a quick painless replacement.
On the other hand, it's confusing to people like ME that use Replace from the ZWave Details page Do I use Replace or use Replace?
The new replace is more or less an alternate entry to the very popular Swap Apps Device tool (in Settings). Which mens from my viewpoint, a better name is Swap.
Using the ZWave Replace, the zwave device gets the same Node ID and drops into the automations directly. The swap method adds the device using the next Node ID then swaps apps.