"Restrict content" probably means that Apple didn't want Vodafone's interface branding, and didn't want Vodafone Live! software on the iPhone. Anyone who has ever used Vodafone Live! knows that it seriously sucks. If such was the case, then bravo to Apple for not caving in.
If the rumor is true that the exclusive carrier for Germany is T-Mobile, it would be very interesting to see how the relationship will play out, since Telekom also owns Musicload, the second largest online music portal behind iTunes...
I'm not convinced that that's what they mean by "restrict content." That does seem to be the most ominous line in the whole of the iPhone articles I've seen.
I mean, they're currently restricting application development to the web. Aren't they also restricting access to VOIP pages? Not sure.
But is there really content they're restricting now or in the future other than requiring certain standards for videos, etc? (Which is a mess in and of itself: no flv yet, some movie previews automatically grouping themselves as podcasts but other movie previews grouping themselves under movies [so the Ratat. preview is grouped under Podcasts, but the Die Hard preview can only be found under "movies," that makes sense, right?], and TV shows not bought in iTunes, just mp4s from Tivo get filed as "movies" not TV. Right! Why can't we label the files ourselves and group within Apple's big categories according to our own desires? Why even have the subcategories? Let's kust put everything in videos and I'll sort them myself).
But I digress. Content restriction on iPhone (no porn for you!): bad!!
Or was this just sloppy journalism and as others suggest Vodaphone was crying wolf ("restriction") when in fact they wanted to keep the Internet freebies restricted so they could sell individual wallpapers of Billie Piper at £2?