> It could result in repeatedly showing the exact same merge conflict over and over again, between the exact same values, on later merges.
Why? Any merge establishes definitive ancestries for each line of code, and when you are merging "A - B - A" with something, you are supposed to tell it that the conflicting lines come from the base snapshot, not from your "reversal". In fact, when you want to revert a commit, instead of re-committing the previous version you should merge with it, I think.
Was that the problem that you were thinking about?