I like to think of that extreme example as "edge effects". Obviously there are limitations to the recovery technique, but "deblurring" is absolutely a thing both in imaging and similarly in non-imaging applications.

https://en.wikipedia.org/wiki/Blind_deconvolution

In a sense, electronic engineering (which I can say I'm a specialist in) concepts like emphasis, equalization, etc are just compensations for channel effects, which one could think as time varying signal equivalents for blurring in imaging.

In that sense, recovery of a "blurred" signal via equalization is absolutely used everywhere that uses high speed digital signals like USB, DDR, PCIe, etc.