That's an interesting question because in terms of brain functioning, antipsychotic drug use among schizophrenics is correlated with fewer hospitalizations, self-report decrease of symptoms, physician-reported decrease of visible symptoms (disorganization, flat affect), better ventricular brain ratio (less cerebral atrophy)..etc.
However...
Antipsychotics are terrible for your health. Aside from the rare but irrevistible tardive dyskinesia, and the other extrapyramidal side effects and agranulocytosis with clozapine most antipsychotics cause significant weight gain, which is not good in a country that is mostly obese with a population that is not known for a healthy lifestyle. Elevated triglycerides, insulin insensitivity, general lethargy which contributes to further inactivity, and many other side-effects that can decrease quality of life. On the other hand, you have these terrifying symptoms that need to be treated, so it's really a no-win situation.
I've found that most psychiatrists vehemently dismiss any claims that the side-effects of the drug are worse that the disease they're treating. One even got really snappish when I tried to broach the subject, saying verbatim, "The side effects are just something that has to be dealt with. People with schizophrenia need to be on antipsychotics. Consistently and permanently. Period."
I'm not saying to ditch this class of drugs, because obviously they reduce positive symptoms unlike any other treatment, but it seems that some psychiatrists are uncomfortable talking about the truly destructive effects they can have on long-term health. Because they are the only treatment, it is uncomfortable to think that they are really not an acceptable or safe treatment at all, and that they can reduce quality of life nearly as much as they restore it. There is a reason for the astronomical non-compliance rates among people with schizophrenia, and it's not just because the patients are paranoid and start to think the drugs are poisoning them, etc. It's because in a sense, they ARE. The side-effects are torturous for many people and there is no way around it. Ask someone who has schizophrenia why they've stopped their medication so many times. Is it because they don't trust their prescriber, or don't want the symptoms to stop? No, it's because the medication makes them sleep 16 hours a day, or feel constantly restless, or gain 50 lbs, etc. I think every psychiatrist who prescribes these should have to take a low dose for a few weeks, just to see what they are prescribing (and the side-effects would be similar in sz and non sz subjects, I think, because sz is not a true deficiency model). This is especially important in a population like SZ where the doctors often feel the need to take a strong-arm approach because the patient is seen to, or in some cases does, lack basic competency and comprehension, and the choice to be medicated is often more a case of the physician telling the patient in no uncertain terms to take the medication. I'm not saying the physicians should stop prescribing it, but I think it might be helpful for everyone for them to know what they're dealing and not be so cavalier about it.
That being said, no...there is no other form of treatment that has reliably been shown to improve the symptoms of schizophrenia. Psychotherapy is sometimes used as an adjunct, but the results of clinical studies on this have been modest at best (partly due to the fact that the psychotherapies tests are mostly short-duration, highly scripted therapies, I'm sure). Some doctors still use ECT for schizophrenia which in my opinion is about the stupidest thing ever...but now is not the time nor place for my ECT rant. Transcranial magnetic stimulation seems to have some potential, but so far it only reduces auditory hallucinations, and only temporarily.
Regarding your question about John Nash, there is some evidence that symptoms tend to spontaneously decrease later in life...although the cause of this is not known.