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I have discovered that you can now smelt Gold and Iron equipment, to recover nuggets. This includes Armour, Tools, and weapons.

However, can this be done for Wood, Stone, Leather, (and most importantly) Diamond?

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No.

Only Iron and Gold tools, swords, and armor (including horse armor) can be smelted, providing Iron and Gold Nuggets.

Leather and Diamond items can not be recycled, but Wooden can be used as fuel. I.e. you can smelt a Golden Sword by burning a Bow.

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  • I'll add that if mods/plugins are available (depending on how OP plays) then the MCMMO plugin or equivalent mod adds a salvage "anvil" that with a high skill (which you train up) can deconstruct such tools into components.
    – DLynch
    Commented May 25, 2021 at 15:09

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