No.
No control over content equals iPhone sinking.
There are regional stores that *should* operate under the general mores of the country in which they are located. There are also ample content controls now.
In that situation, for Apple to say that all content decisions are controlled by Apple HQ in the USA, based on the USA's idea of what's morally right or wrong is a disaster waiting to happen.
Previously, people were assuming it was the lack of parental controls that was at issue, but is this is true, it's saying that despite those controls, Apple will still tell you what you are allowed to view or publish. At minimum, the people in Europe are not going to take that for very long because it's ridiculous.
Turn it around and imagine that Apple is a European company, and they decide that "violence" in games is an immoral issue and they simply won't allow it. How do you think the average US citizen would react to that?
It's total hypocrisy (if true.)