Yes, and in fact you can see from that exactly what editors can do. (Look for calls to the function editor.) Editors can basically edit titles, kill stories and ban users.
I believe the source for a subset of HN is available in the Arc distro. I remember PG commenting about having to remove YC specific stuff from there.
YC's application form is integrated with HN. I assume that's the main thing they removed.
He was talking about things like the YC summer/winter application forms, not the moderation system.