Health Sponsorship Council chief executive Iain Potter said they didn't want to promote messages or products that competed with their healthy eating messages.
They'd sought advice on the bottle-feeding image, but decided to make the other changes themselves.
"We wanted to make sure that the Smokefree message was heard and understood - part of our reason to remove the bottle-feeding image was we didn't want it to distract from the Smokefree message."
Young Sid couldn't be reached for comment, but Otara resident and mother of five Tracy Walters - who went to school with him - was perplexed by the censorship. "They should have just kept it real," she said.
As a local, she quickly spotted the changes, and said the ad was "dishonest".
"I see no reason why they've gone and changed it when the ad's about not smoking."
Ironically another government-funded organisation with an important message has made a hit ad thanks to chips.
Andy Knackstedt, New Zealand Transport Agency's media manager, said the anti-drink driving "Ghost Chips" ad had drawn no criticism for its reference to hot chips in the afterlife. The ad, which had 1.8 million Youtube hits in only three months, was a "roaring success".