This isn't the first time I've seen something like this. Back in the heyday of Palm, if you had a reseller agreement with them, you had to agree to the same condition: no "buy a computer, get a free Palm" type giveaways.
I agree with the others that said that Apple (and Palm) are just trying to avoid devaluing the product in the eyes of consumers. And I'm sure, like Palm, they couldn't and wouldn't try to enforce this on anyone who wasn't an authorized reseller.
300m is the minimum requirement - many, probably most phones are much more accurate than that. I worked for a cell phone manufacturer back when the requirement was put in place and helped get their first prototypes together. A barebones implementation of GPS was definitely involved, and it was assisted by the information that could be gleaned from the tower(s) the phone was talking to.
I don't know what ordinary non-smarthphones are doing to cover E911 requirements these days, but yes, GPS is probably involved even if GPS information is not accessible to the user.
If your friend is in the US, the location information is automatically sent. This has been a legal requirement for some years as part of E911. Cell phones are required to be able to determine their location within 300m and report it to the 911 center, even if the phone doesn't have user-accesible GPS features.
This is just another nice income stream for Apple. Does anyone really think that Apple would remove every other way of installing software from the Mac? They'd have to deny shell usage, direct access to the file system, prevent browsers from downloading executables, etc. I can't see it happening on OS X- they need something for developers to develop on, after all.
But, if they started to make larger iOS devices (as the rumor mill is saying lately) I'm sure they'll be as locked down as an iPhone.
Computers are useless. They can only give you answers. -- Pablo Picasso