Sometimes a user mistypes and accidentally uses profanity. By looking at the context of the post, it is clearly obvious that the user meant to type "shot," for example, but mistyped.
Another example might be that someone posts a long, detailed, great post that contains a few words that make the post not acceptable. A mod might flag that post and tell the user to remove the few words to make the post acceptable.
One more: maybe a person uses an acronym that in Utah/Mormon culture isn't offensive because we substitute "fake" swears, but the general population does not. The rules state that the general meaning is what matters. A merciful mod (not me ) might flag it for editing.
As mentioned above, if we think the content was intentional or a few words being removed won't make the post acceptable, we delete.
I like the new option. That said, it will probably be used somewhat more sparingly than most posters like because it does create more work for mods because we have to go back and check the edit and manually approve the post.