I find use of the term "retouching" to be quite strange (in this context).
Retouching was traditionally used to minimize/remove/hide features that were considered to be unwanted - things like wrinkles and pimples.
The discussion in the thread (and the rules people refer to) seems to be more about falsification in general - manipulation that tends to change the nature of the subject presented.
If someone burns in a distracting reflection off a button on a shirt, or darkens a distracting corner of a window in the background, they may be changing the photograph, but they aren't mis-representing in any way the subject in the photograph (unless the button and background window's tone are meaningful in some way). Essentially, they are just dealing with a mis-step in the photographic process.
It doesn't make sense to exclude that purely technical and essentially non-editorial item.
You are right - his terminology is way off and im not even sure he understands how Nachtwey has processed his shot. Its not even clear that he understands a contrasty scene has been heavily softened.