What exactly is credible about snopes.com, Lid? How is it more credible than Bonsai kittens? Creatures can be deformed in such ways and survive. It's been done to humans to a lesser extent. Some odd number of years ago it used to be popular to have small feet in Japan. What did they do? Mothers wrapped their daughter's feet in silk for years, so as the body grew, the feet did not, and as such they became deformed and rather hideous to look at. It happens. It can happen. Would bonsai kittens be possible? Anything is possible. I don't see a reason why I should believe some nameless person on that urban legends website.
Edit- Nameless you better be happy I'm not a moderator in here, because your ass would be beaten raw right about now. There is absolutely no need to post a picture which is so innapropriate for your own amusement.