You're absolutely right! Diffusion models basically invert noise (random Gaussian samples that you add independently to every pixel) but they can also work with blur instead of noise.

Generally when you're dealing with a blurry image you're gonna be able to reduce the strength of the blur up to a point but there's always some amount of information that's impossible to recover. At this point you have two choices, either you leave it a bit blurry and call it a day or you can introduce (hallucinate) information that's not there in the image. Diffusion models generate images by hallucinating information at every stage to have crisp images at the end but in many deblurring applications you prefer to stay faithful to what's actually there and you leave the tiny amount of blur left at the end.