I believe they literally do. Take your own comment here. Censorship would be suppressing/removing it. What the CEO did is much worse. For example, take this screenshot I made in five seconds using Firefox Inspector (F12 in Firefox, if you're curious):

http://i.imgur.com/OKl6nV7.png

You obviously never said that, right? Now, imagine that it said something more controversial like "Kill yourself," or involved you fessing up to a crime you didn't commit. Imagine if someone falsified private messages via screenshots. Yes, admins could probably prove that the screenshots are fake, but what if it's an admin who makes the change in the first place? What if you've already lost your job? What if this is an account tied to your real name/identity because you advertise on Reddit, and you lose customers/clients, and are raked over the coals in real life because of it?

The Reddit terms of service explicitly state that we are "solely responsible" for what happens with our account, and in the court of public opinion, that is all it takes. I hope this clears up what I meant when I said this goes "beyond censorship." Deleting comments from a platform is one thing, but falsely attributing content to users without their consent is a whole other level of troubling.