I have rescued many fish from some pretty nasty situations. Here's what I have seen personally in my own tanks. I rescued 2 channel cats from a lfs. They had lived in the lfs with fin and tail rot for 5 months. No one would buy them because they had no fins, and no whiskers. I tried to tell the lfs what was wrong with them and they never listened gave me the excuse it's too expensive to treat for fin and tail rot. Month after month I would check and they were still there. They were only about 2.5" without fins. Then they started developing popeye, and cloudyeye. I knew they were on their way out. They hadn't grown any in 5 months. So I told them I would take them for free plus some medication for them. I took them home, and after a month their fins started growing back. After 3 months they started growing again, and now after I had them for 8 months one got bit in half by my jau(another rescue), and they were at 12" then. Now the surviving one is 18" and is outgrowing my Jau, RTC, and my TSN. He grew 2" in the last month. So I think in time you can reverse stunting. I don't dare doubt that these fish were stunted when I got them.
Another example. I fish for catfish also, and when I gut hook them I will keep them in my home tanks. I caught a 10" stonecat that is maxed out. 10" is right at the state record so you know they don't get larger in the wild. Mine started growing after 3 months and was 11". By all means a 11" stonecat would be close to 8 years old in the wild. So all in all I would say that stunting can be reversed to some extent, but depending on how long it's went on I doubt it can be completely reversed. Plus if they are stunted to the point where their head is the only thing growing and their body stays small there is damage to the internal organs, and if the fish starts to eat healthy again It's organs could become over stressed and kill the fish. If you are bringing a fish out of a stunted state, you should slowly over a period of time increase the ammount of food that they consume. Once their bellies and muscle tissues return you can ramp it up a little. Most fish like this are emaciated and you can see their ribs, spines, and facial bones through the muscle and skin. I've seen many ID sharks, and plecos that are severely stunted and starved almost to death.