Hard to know what to make of it. There's no good reason to lie about an easily verifiable fact, and Romney has been known to dip into literary language occasionally, especially when he's trying to illustrate a point of history.
The facts seem to be that Romney's father put himself at political risk to march on behalf of civil rigthts; Mitt and Scott Romney may have heard, as young men, that his father marched "with" MLK in the sense that the preposition is used by a politician who says he "stands" with workers... that Romney's efforts to explain himself were pedantic and, judging by the response, easily mockable... and that, so far, Iowans don't seem to be hearing about this all that much from their own press...
The Kerry comparisons have to hurt, though.
BTW: Here's Romney's newest ad in Michigan. It's personal to him.
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