It is documented in the manual page. Your config option is not quite correct. The correct version is:
ReverseProxy ^/nodestuff/ http://127.0.0.1:1337/
The '1' in the example means that Hiawatha skips 1 directory. So, if the request is to http://www.domain.com/some/random/path, Hiawatha will skipp the first directory ('/some') and use /random/path when forwarding the request.
No, I have no plans for writing a book for the simple reason that Hiawatha has not many users.
Hiawatha's proxy is blocking. Asynchronous is pointless because not many browsers use request pipelining (they support it, but it is disabled by default).