I think it can do quite good reflections. The image shows a couple of primitives, (sorry about the awful colours, it's just to demonstrate the reflection) reflected in the ground plane. In both cases the ground has a slight bump applied using a fractal_sum node. The left hand image has no displacement, the right hand one a little bit using a turbulence node to give a kind of oily appearance. Displacement on its own does not affect the reflection, but when combined with bump you seem to get more marked effects.

With a bit of experimenting you could get quite convincing reflections in the water.

Steve