When an element is updated by the user, the existing rendered diagram is cached and the semi-transparent copy of the element you see on the screen is drawn over the top. When customising the renderer, you will draw any custom rendering over this cached bitmap if you do not check the Locked property.
The updated sample from the help file should look like this
protected override void OnPreRender(System.Drawing.Graphics graphics)
{
if (!Locked && Watermark != string.Empty)
{
SolidBrush brush = new SolidBrush(Color.FromArgb(128,Color.LightGray));
Font font = new Font("Arial",72,FontStyle.Bold);
graphics.TextRenderingHint = TextRenderingHint.AntiAlias;
graphics.DrawString(Watermark, font, brush, new PointF(30,30));
graphics.TextRenderingHint = TextRenderingHint.SystemDefault;
base.OnPreRender (graphics);
}
}