When I beta, I pretty much point out anything I notice. Some of it's grammar, some of it's phrasing or characterization or plotting... some of it is off-the-wall "hey, that reminds me of..." stuff. But if I point out something that I think should be changed, I'll say so, and I always try to have an alternate suggestion -- just to illustrate what I'm trying to say. At no point do I assume that the author *must* do what I say or it means they don't love me anymore
One thing I noticed in this thread...
Should I edit for rhythm and flow as well, or would that be encroaching on the author's style?
Definitely point it out and make suggestions. "I love what you're going for here, but I think maybe it would work better if you arranged it *this* way instead..." You'll quickly get an idea of whether your suggestions are helpful to a particular author.
But definitely don't just go ahead and change it. Which probably isn't what you meant, but I thought I'd make sure
PJ