I would have to agree with the course of action taken by the Blade in this case.
While cloning out a couple things doesn't seem to change the story, its still not portraying the truth. Though it is rather inconsequential if the cord in question is in the photograph or not, it is crucial in this age that readers are able to believe the photographs they see in the newspaper.
In the world of professional journalism, I think even having the need to clone small things out is unexcusable. It would have taken the photographer all of ten seconds to walk to the other side of the hair dresser's table to get a photo without the cord in it. If the cord is a problem and the subject is important, he should have a different shot somewhere.
I also do not buy the argument that removing legs from the aforementioned photograph is harmless. People don't generally just stand behind a banner on the fence, but this person clearly is. He/She is there for some reason, whatever it is IS part of the story.
As for the argument that reporters consistently twist and spin the truth, this may be. But I bet that anyone caught intentionally removing facts would face the same consequences. Any amount of this that does occur in the course of reporting, is more than made up by the numerous control photogs have over what they shoot, they don't need free reign to remove bothersome objects.