Question:

Does the slap happen with content targeting?

Answer:

No. Though quality score will affect positioning of your ad (for the given bid), your keywords won't be "slapped" with an artificially higher bid.

For content targeting, your bid (which can be different than your default bid for search) applies to all keywords in the adgroup.

So Google doesn't have the option yet to slap keywords individually, when it comes to content targeting.