I think the edit notice is still too big, too eye-catching, too close to the post content, and too bold. In PlotDevice's post two posts up, the edit notice with the edit reason takes up almost as much space as the actual post and is far more bold and eye-catching.
There is already edit information in the mouse-over. If I had my wish, I'd push all the edit info (editor, time, date, and reason) into the mouse-over pop-up and just have a as-tiny-as-is-readable "Edited" at the very bottom of the post.