Think of it this way. Put your truck up on a lift and let the front wheels come all the way down. Call that "fully extended". Anything past that is "over extended". As in the truck was never designed for the suspension to be pushed that far out/down.
Now install your spacer kit (whether it's a strut tower kit, or control arm spacer kit, doesn't matter). You've just pushed the suspension down another inch or two. You are now past what was "fully extended" and you are now, by definition, "over extended"
The blue drawing in the Bilstein picture is the exact opposite. Imagine you put your front suspension all the way up as far as it can go, under the front fenders of your truck. That's your full range on the compression side. Now stick that one or two inch spacer in there. You just lost some travel. I don't know if you call that "under-extended" or what.