It's essentially like "cracking" a password when you have its hash and know the hashing algorithm. You don't have to know how to reverse the blur, you just need to know how to do it the normal way, you can then essentially brute force through all possible characters one at a time to see if it looks the same after applying the blur.
Thinking about this, adding randomness to the blurring would likely help.
Or far more simply, just mask the sensitive data with a single color which is impossible to reverse (for rasterized images, this is not a good idea for PDFs which tend to maintain the text "hidden" underneath).
You note the pitfall of text remaining behind the redaction in PDFs (and other layered formats), but there are also pitfalls here around alpha channels. There have been several incidents where folks drew not-quite-opaque redaction blocks over their images.
Also not a good idea for masking already compressed images of text, like jpg, because some of the information might bleed out in uncovered areas.
Except the size of the blocked section ofc. E.g If you know it's a person's name, from a fixed list of people, well "Huckleberry" and "Tom" are very different lengths.
JPEG compression can only move information at most 16px away, because it works on 8x8 pixel blocks, on a 2x down-sampled version of the chroma channels of the image (at least the most common form of it does)
https://en.wikipedia.org/wiki/Wiener_deconvolution
If one blindly inverts the linear blur transform then yes, the reconstruction would usually be a complete unrecognisable mess because the inverse operator is going to dramatically boost the noise as well.