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Have they reinstated the games back in the 177 countries they delisted it in? Can those people who paid for the game still play it?
Short answer: Yes.
Longer answer: The access hadn't been removed yet, as the update that would enable account linking wasn't pushed yet. As for the Steam side, I'm pretty sure people who already had the game installed should've had access still, although updates and general unsureness definitely could be obstacles. With this tweet, however, the update is no longer coming, and were just waiting for Sony/Valve to lift the selling/installing restrictions in those countries.
Steam only removes games from the store, and doesn't remove games from anyone's library. Those affected people, if they didn't refund, will still have HD2 in their library. There is also never install restrictions/blocking.