Has the local newspaper overreacted?

I spend a part of my day working the puzzles in the newspaper. Sudoku, crosswords, jumbles, wonderword, the bridge column, the chess problem, and, of course, the Decodaquote.
The Decodaquote is a quotation which has been cryptogrammed. Letter substitution is required to solve the puzzle, and reveal the quote.
When Monday’s puzzle is solved, it read:
“We live in the greatest nation in the history of the world. I hope you’ll join with me as we try to change it.” —Barack Obama
Today, the newspaper posted a note on the puzzle page announcing that the quote was false, and the Decodaquote feature would be replaced, beginning tomorrow.
Did the newspaper overreact?
What should they have done?
How damaging is it to allow such a false quote to be published in a puzzle?