Where there's smoke, there's fire (heat). If you see smoke with power tools that means friction, and lots of it. Friction comes from dull tools or excessive contact with a rapidly moving non-cutting surface (the face of a blade, instead of the cutting edge.)
But if you're moving the router the wrong direction, aren't you moving the non-cutting edge of the blade into the work?
Not sure how a slot-cutting bit is set up, so that may be a dumb question.
Technically, yes, if you can move the router faster than 3 times the RPM of the router (or maybe 4 times, depends on how many flutes or teeth the bit or blade has). But in practical usage, no.
My handeld router runs at about 14,000 rpm, and my slot cutter has four "teeth" so it would take a virtually unachievable feed rate to keep that from cutting. If you do the math, it shows that a sharp part of the bit is striking the wood about 900 times a second.
Sometimes it is desirable to move the router in the opposite direction of the blade to give a smoother finish on the cut. This is not recommended if cutting by hand because of the afformentioned control difficulty.
The direction of the blade is what does the cutting. If you put the blade on upside-down, then you would be cutting with the back edge of the teeth (VERY BAD!). Moving the router in the opposite direction of the rotation is not the same as this.
RandyT