Why doesn't Class C modulator operate in saturation?
Don't get hung up too much on the 0.2 V definition of saturation. Here's a section of the data sheet for a 2N3904: -



With a base current of 5 mA the table shows the saturation voltage to be 0.3 V. The other thing to consider with BJTs is that as you pump several mA into the base, the base-emitter voltage gets to a point where the collector-base region becomes forward biased and now the base is "lifting" the collector significantly above the "conventionally accepted" saturation voltage of 0.2 volts. Basically the BJT is not working in the conventional sense.

Looking at the characteristic curve of the 2N3904 you can see that saturation progressively rises as base current increases: -



I've shown a red circle on the graph at a collector current of about 12.5 mA - clearly, saturation is significantly above 0.5 volts and borderline 1V.

Don't get fixated on 0.2V!