That options menu Cog Wheel stuff is a nightmare to deal with (I'd have to write a paragraph or two to explain it...) involving permissions checks that have to be added and 3rd-party application hooks into this area being over-written by KS and no easy way around it. I've made a few specific app fixes but honestly it's more trouble than it's worth (and none of them move things into the options/cogwheel bit - they make sure they are stuck in there at the bottom.)
I'm strongly considering pulling some things out of the KS plugin and sticking them in an application to tackle some of these problems. In this case it would literally be just a single hook for this forum post menu bit, and you would have to drag the application to right after the Forums app in the app list. That way, it would let you move the edit and quote buttons into the options menu, and change it into cog wheel if you like, but would cause zero conflicts with any other 3rd party stuff. No 3rd party stuff would appear in the options menu though, there is no real way to handle that at all, at least on my end.