O'Neill was asked directly, by Alan Colmes, if the ad was accusing Kerry of treason. O'Neill said that he was not going to get into legal parsing (which is necessary to reach the conclusion of "treason"), which makes it clear that the SBVfT are not accusing Kerry of treason. They are putting out uncontested historical facts to remind the viewer of Kerry's past.
O'Neill is a smart lawyer. FOX was a fool for wording the ad refusal in the way it was worded. Bet there's more to this story, like Kerry threatening to sue FOX if FOX runs the ad again.
I speculate, you decide. ;o)