I just tested out the new VLC 1.0.0 and frame stepping is great! In my view the best new feature in this release.
Stepping does however only work forward and I would like to see backward frame stepping as well.
When working with animation and video frame stepping is one of the major features used in a player.
There are already a few players that can do forward stepping but there are none on linux able to do backward frame stepping. There are a few in development but none working at present. (I've personally solved this by a wine Quicktime install but that is a slow solution)
Adding frame stepping is not just a nice to have feature but for the whole digital video industry on linux a must have feature.