Seems it's a huge betrayal of trust, or some such, it's been all over the news a politics coverage all day.
Nothing Kensington Palace says will, in the future, be believed, demands that the original photo be published, lectures in photography interviewed, experts in photoshop0 interviewed.
Flippping 'eck, what a palaver, but I have to say that Kate was a bit daft giving Kensington Palace an 'edited' photo to give to the press. She's been around long enough to know that it would have been gone over to the nth degree by eagle eyes if not Kensington Palace.
If she didn't like the photo why not just take another one and keep her 'editing' practicing to ones not given out for public consumption.