Steve beat Billy's 874,300 score (by a lot, and many times over), when he was in college in the late 80s. He sold his machine because he kept hitting the kill screen (in the mid 900Ks) and thought it was broken.
He WAS the first player to beat Billy. Just not officially. In fact, it's probable that Steve was the player with the true highest score for damn near two decades.
(For that matter, 874,300 was not Billy's PB in 2000. It may have not even been his PB in 1982.)
At no point did Tim actually have the highest score, except on the TG leaderboard (which Steve didn't know about, and Billy didn't care about), and both players had Tim absolutely crushed, scorewise and skillwise, by the time the documentary started filming.
In any case, "who beat Billy first" was not the point of the movie anyway, the storyline would have been the same whether or not Tim had been mentioned, and ultimately Tim has gotten more interest and notoriety for NOT being in this movie than he would have for being in it.
You tell me which is the worse evil: filmmakers making the decision to omit details for the sake of clarity, accessibility, and running time (ie, doing their job), or spewing bile, slander, and bullshit accusations at an innocent person for the better part of a decade?