I guess I understand the point about modifying the brace, because the ATF would have to determine that whatever mod was done, wasn't for the purpose of making it shoulder able, or violating some other ATF rule. But I don't understand the 2nd sentence. If one replaced the buffer tube, it could just as well be for the purpose of making it easier to shoulder. So I don't see what rule would allow one without the other. Why couldn't one simply remove the existing brace, without changing buffer tube?
I don't see why the buffer tube needs to be changed. What operating rule would require that? Since shoulder stocks (per se) are forbidden, removing the item that seems close to a shoulder stock wouldn't be afoul of any law that I know of. It would actually make the firearm less shoulderable. We add compensators without any issues. Of course the ATF might look at them, but we don't need approval before adding them. Only after the ATF has made some determination, do some things become illegal. There certainly isn't any rule about making an existing pistol more compact.
The ATF rules on the design of firearms. The ATF might get after an individual ONLY if they have created an illegal weapon. Or to put it another way, individuals modifying pistols don't need ATF approval beforehand, unless they believe they are creating an NFA firearm. For instance, say the pistol had no brace at all, and was approved. If an individual added one, the ATF might say, "hey, you just added a shoulder stock and that is illegal", according to NFA.
What would be "illegal" about a pistol in that configuration? I doubt the ATF would have any argument and since we don't routinely run to the ATF for modifications unless there is good belief we are creating someting illegal, if no one can say what might be "illegal" in that configuration, I don't see any issue.