Sounds more like a fancy way to word that there will be a region-lock.
It might not fuction correctly ot foreign systems -> therefor we will make it not function at all so there are no confusions.
E.g. considering the Wii/DSi don't have accounts and you don't get to choose the online store for potential DLC, I could see why they'd want to avoid something that would make the user buy the wrong region DLC, or not find any DLC provided the link to that DLC is in the game.
E.g. on the PS3 if you are, say, using an European account playing a US copy of... Singstar comes to mind with its integrated shop, then clicking on that shop will either send you to the European Singstar store (and the DLC is not cross-region compatible), or show something empty. Don't know which since I don't have the game, but it definitely won't send you to the US store.
Or you can have a game like Nier, whose Japanese and Western PS3 versions (including DLC) are different, and DLC is still linked from inside the game.
Or something like multiplayer might not fuction correctly (which I think there is a problem with on the DS as well at times).
