Hi WiringBoy,
I don't think anyone has attempted to address your question yet. I'm far from a symmetrical components expert but perhaps I can shed some light.
When the fault happens on the adjoining feeder and the ground fault flows the neutral of un-faulted feeder, why direction is important because neutral current travels in the un-faulted feeder in the same direction with or without fault.
I think some of the problem might be that you talk of neutral current and the paper is dealing with zero-sequence current. In essence they are the same thing, but while neutral current is a physical, measurable quantity, zero-sequence current is a man-made, calculated quantity. Depending on how it is calculated, I think it might not match the intuition you would otherwise get from imagining the neutral current at a certain point. In particular, the paper uses a sequence connection diagram under ground fault conditions to determine the zero sequence current. Since the sequence diagram is only a representation of the circuit under particular conditions, the directions and points of reference may not match up perfectly with the neutral current in the original circuit.
So if Relay 1 determines zero-sequence current using the same method as the sequence connection diagram, then perhaps it will register a reverse zero sequence current. As long as the calculation method is consistent, it will all work out in the end. Now I don't have the sequence network analysis expertise to figure out if the method is actually valid, but it's plausible I suppose.
That being said, I've run a bunch of different simulations to see if it's actually possible to get the sum of the phase currents (which is how I would imagine zero-sequence current is actually calculated) to reverse under fault conditions. I've convinced myself that that is not possible, given the scenario described by the paper. So at this stage I'm willing to suggest that the author has got themselves confused with their sequence diagram, and that in actual fact you will not get an actual physical relay to measure any reverse direction zero-sequence current. As you say, neutral current flows in the same direction with or without the fault.