What term used to be defined as removing a paragraph or other segment of text from a manuscript with a blade and gluing it into a different part of manuscript?

I'd say cut and paste.

In general and by definition, cut and paste is a way of moving files, selected text or folders to another location. Cut removes and paste inserts. An Item can be removed from its current location and placed into the clipboard by cutting. Paste inserts the item in the current clipboard into the new location. This same concept also works in graphics design. You can cut a paragraph or a segment of text from a manuscript with a blade and paste it into a different part of manuscript