Edit Mode allows an admin to make changes to a Portlet and have these
changes visible by all Portal users.
When a user edits the portlet, the changes are only visible for that
user.
Is it possible to allow a user to edit a portlet and make the changes
visible for all users?

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Please use the portlet config mode for this. Edit mode/PortletData is for a 
user not for all users.

When an admin changes a portletData object in the edit mode all the users wi
ll be able to view the changes because:

PortletData object is not created for a user. So it uses the default portlet
 data. But when a user changes the portletData a new portletdata object will
 be created and that object will be specific for a user.

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