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'Edited by' will stay. It is so a poster can't say something then later just edit it say state "but I never said that!". The edit text shows that the post was edited since the initial post.
Note, however, that this reasoning doesn't work very well, because of
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I'm not trying to sound facetious, but people do realise you can delete your previous "edited" comment if you re-edit, right? That way, there's only ever one "Edited, date, time, by user" at the bottom.
All a poster who cares has to do is wait until he is called out on editing a post, and then edit it again erasing the original edit timestamp. Then he can say "Lol durr, I edited it after you wrote that!" Since quoting an edit stamp gives you a chance to change it (and, for that matter, anything in the quoted material as well), there isn't any way to prove which of the two people arguing edited the disputed material.
All of which is ridiculous and childish. My point, though, is that keeping edit stamps around just to make it easier for childish posters to argue about who said what doesn't even work for anyone who cares enough to argue about it. If the edit stamp can itself be edited, it has no validity and is therefore pretty pointless.