is for editing your own post, when you want to add something to it so you dont have multiple posts. Also, when you edit someones post, they can edit it back and effectively remove what you entered. Eg Joxley could change his post above so that your comment isnt there (after all it is his post)
is for replying to a particular comment that someone has made so that he/she knows your responding to them, and then they can respond back. Also note the quote can be used multiple times in a single post, so that you can reply to loads of people at once.
Im guessing the mods complain because you quote loads of posts seperately, instead of merging them into 1 post. Multiple posts are multiple posts, regardless of if the quote is used or not. And im not having a go here, im just pointing it out.