Earlier quoted context omitted.
The data may still be there, it just looks like it's gone.
Blur is in effect a lowpass filter on the image. The high frequency information is gone. Reconstruction based on domain knowledge, like AI methods etc is unlikely to be able to reconstruct the distinguishing features between people enough to avoid false positives when used to search for similar people. Then again, maybe groups of people can be associated together, and a poor match is good enough given other clues. So…
diminished in power.
It's only gone if it goes below the quantization threshold. Depends on the filter.