I think the main risk here is not just altering data but the precedent it sets. Once you create an API that edits blockchain responses, you’ve basically introduced a middle layer of truth that people have to trust. Bitcoin’s whole foundation is that the data is verifiable and final, no one edits it for you.
If you're creating a service to sanitize for legal reasons, that's fair but it should be clear to the end user that they’re interacting with a filtered view. That way, you keep the trust model intact without creating confusion or accidental reliance on a modified dataset.