Rewriting someone's words and presenting them as their quote isn't something we should just have to put up with, or practice feeling "really uncomfortable" about for the good of our souls.
There are real life laws against deliberately misquoting people, and other message boards have rules specifically disallowing it.
Nor should the onus be on the readers to have to constantly refer back to the original post to make sure that is really what the person said.
Can you imagine the sort of confusion allowing this will ultimately cause?
Communication is the purpose of message boards, and this deliberate sort of miscommunication - not to mention the deliberate misrepresentation of other posters against their will - shouldn't be condoned. Your intepretation of the TOS should be that deliberate misquoting of others is not allowed, or at least not when done with clear malice.
Could you reconsider this?
coco
Edit: I've sent you the first five examples of rules against deliberately misquoting others from other message boards that came up during a quick Google perusal before I posted this question to Second Life Answers. I'm sure there are more, if you need to see more examples.