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Reverse Engineer...??? AFAICT, part of the functionality is accessible from New Project wizard, select UML > Reverse Engineer a Java Project. Using this project wizard you can create a new UML project. The Reverse Engineer action also allows you to add the models into an existing UML project so it does not have a full replacement anywere else. IMO the action should be removed from project popup menu and instead there should be a wizard in UML project that would allow to select a project/package/class to be reverse engineered. Or we can keep the action as it is....
UML provides reverse enginering via the new project wizard and the popup menu on any project containg java source. This is by design.