All that DISA has issued is an "Interim Security Configuration Guide" (see: http://iase.disa.mil/stigs/net_perimeter/wireless/u_android_2.2_dell_iscg_v1r1_20111020.zip), which is for "limited deployment, pilots and demonstrations" (see: http://iase.disa.mil/stigs/net_perimeter/wireless/u_android_iscg_release_memo.pdf). An approved device would have a "Security Technical Implementation Guide" (see: http://iase.disa.mil/stigs/net_perimeter/wireless/smartphone.html), such as BlackBerry and Windows Mobile.
As you can see, the auction info has not been updated to reflect the correct history of the computer.
That design choice doesn't do anything to remove the responsibility of the user to monitor the volume level. If someone wants to blow their eardrums out, that is their choice. But by adding the higher volume level capability, the iPod is now a viable product for those who are already hard of hearing.
Let's apply your argument to another piece of audio equipment. Take the common receiver. I just looked at one that had 770W total power, 110W per channel. Paired with the right set of speakers, it would be more than capable of damaging hearing. Yet, no one is trying to force them to make "safe" audio equipment.
It is much easier to suggest solutions when you know nothing about the problem.