It is however trivial for even a non-technically inclined person to remove the text content through Acrobat's content editing pane.
Just as you suggest, things like this seem to be an example of someone in a large organization not quite understanding how the "magic" behind the tools they use work and winding up with results they didn't expect.
Edit: you can pad the redacted box with spaces to keep the formatting consistent.
A significant portion of my day job involves working with people in government that have a mental model of content distribution that was constructed during the era of print. Its a fun challenge to help people adjust those models to make things more efficient / more informative / less dangerous.
I suppose the (extremely limited) redaction features in Acrobat stem from the belief that the document is ultimately destined for printing rather than computer reading.
Here is an example of the process to apply redactions to a PDF file (or any sort of electronic document). The document is opened in a third-party native viewer with redaction capabilities (and not in the original application like Arcobat or Office). The end-user draws a black box over the appropriate text using the third-party native viewer. This redaction is saved as a separate layer that can be rendered on top of the native document when viewed in the software, as well as printed out. Finally, when documents need to be produced for court, they are printed out to a TIFF-printer driver, effectively converting them to TIFF and "burning in" the redaction layer. The TIFFs are delivered to the courts and opposing council.
The pre-processing is largely automated but there's certainly a portion (maybe 5%?) of documents that need to be hand-classified in the database before they get to the lawyers. It an interesting field - lots of money to be made, intense competition for it, relatively simple technology requirements but a legal industry which has been resistant to technology for quite a long time. Autonomy seems to be the leading software company in this space.
A PDF file stores a sequence of instructions for what do draw on a page. The instructions are commands, such as "write this text here" or "draw a circle there." When you draw black redaction boxes, you are just appending an instruction to the end of the list ("draw a box here"), but most of the time the previous instructions are all still there.
Really, the only way to redact a PDF with certainty, short of manually reading the file itself (yes, PDF files are text-readable; you just have to decompress them) is to rasterize the file to a large image. Otherwise, the instructions for writing the text are all still in the file, and there are any number of ways to extract them (for example, simply by deleting the instruction to draw the redaction box).