I agree with you on a technical level that it is actually deleting it. I just anticipate my users thinking that their Forum post (or photo, or wiki page, etc) is deleted, and becoming upset later when they realize that the post is still there. They’re not used to thinking of Activity as a separate set of data from the actions that undergird that activity.
I guess the ultimate solution would be to have a dialogue (a la Facebook) that asks, “do you want to delete this item or simply hide it from activity,” but that would be much harder to do.
Anyway, just some feedback.