svn saves informations about the working copy in the .svn folders and uses it to perform some management tasks on the working copy without having to access the repository i.e. go over the network. If you browse those directories you'll find there a local database file and bunch sub-directories with a bunch of .svn-base files. Those reflect the state of your working copy at the last time you have performed an svn update or svn checkout. So if you change a file in your working copy svn can tell the difference based on the corresponding locally saved .svn-base file and thus can revert the changes.
Informations about directory structure is not saved. If you want to revert changes on a directory the simplest way is to perform an svn update - which obviously needs the repository and thus network connection - from the parent of that directory.
It seems that you are reading the help of an older version of the svn client as posted in the answer to this question.
With the version 1.7 (at least, I cannot confirm with which version exactly this change came) and above svn help revert states:
Note: this sub-command does not require network access, and resolves any conflicted states.
And after some testing on one of my local copies:
Deleting using filesystem
Cmd-$> rd /Q /S <working copy>
or deleting using svn command
Cmd-$> svn remove <working copy>
D <working copy>
D <working copy>\<file1>
D <working copy>\<file2>
Using the command
Cmd-$> svn revert -R .
I was able to revert in both cases.