Are you sure it was TCM who did the editing? I haven't seen the original on video but on reviewing the clip on You Tube (search under "All Fall Down Beatty"), I wonder if it wasn't the Production Code Administration (once known as the Hays Office) that insisted on the kiss being excised. Although Hollywood was pushing hard against the Production Code in the early '60s and would eventually win the first American ratings system six years after ALL FALL DOWN was released, one can imagine that the PCA still would have demanded some toning down of the incest angle in 1962. Having said that, the scene still is a powerful evocation of the relationship between Annabell and Berry-Berry. Lansbury may have gotten Best Supporting Actress for her next role in THE MANCHURIAN CANDIDATE (another 'smother with an inecestuous edge) but this was the more subtle performance.
SPOILER HERE:
I haven't read the original James Leo Herlihy novel either, but I also wonder whether Echo's fate in the film also was dictated by the PCA, or whether it was part of the original novel.
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