Is morphine ever used to help with pulmonary edema?

Yes. In the past, morphine used to be one of the mainstays of treating pulmonary edema. Beside dilating the vessels, it also takes away the feeling of breathlessness and makes the patient feel better in more than one way.
Yes. Morphine is often used to treat a heart attack which could be the cause of the pulmonary edema in the first place.

Related Questions

Is morphine in anyway used to help pulmonary edema?

Yes. It is given for chest pain but also decreases venous return which helps reduce pulmonary edema.
Used to be. Morphine has been used as a relaxant to assist with ventilation and support in pulmonary edema cases. It serves as an anxiolytic is supposed to decrease the work of breathing. More recent studies, though, suggest it may cause more harm than good. Nowadays its use is limited to heart attack cases (not pulmonary edema per se).

Morphine helps redistribute blood volume in pulmonary edema. How? And is it causing any reabsorbtion of fluid?

Who cares? It works that is what is important underlying reason for the lung edema has to be checked out.
In theory it works. As a vasodilator. By increasing peripheral venous blood volume, there is less venous blood returning back to the pulmonary circulation and thereby decrease the formation of pulmonary edema.