This setting is currently available in the SDK and is a very valuable option for users to not lose ant locally edited document copies when they refreshed. Adding a command to the GUI for this already-existing functionality would be great for users wanting to use this functionality as a safe-guard for specific instances that local data is being refreshed over a local edit.
Not sure how this is currently implemented but even putting the replaced file in the recycle bin would be sufficient for us. It's a good "just in case" setting.