Yes, restoring a backup from the Controller would return your record data to the state at the time of backup.
We have had in mind (for a long time) to provide the means to recover specific deleted records. But (perhaps surprisingly) we haven’t sensed the demand for that to-date.
Opinions welcome on the usefulness of implementing this.
Currently, deleted records can be recovered manually by Netcall (though charges might apply for this service).
Another option - although not trivial!. If you set up an ODBC view on the object, you can get all records both deleted and active. You can include the Status attribute in the view to see which is which.
Give me a call if you need any help setting this up. The one caveat I would give is that you will need a MySQL driver on the system you are reading the data on, as well as setting the IP address in the ODBC database settings.