Retrasado said:
God. when will you people learn? It's not about copyright infringement. Period. How do you think Incognito is getting away with adding custom soundtracks to Warhawk in the next update?
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From the way the author wrote this piece it sounds like he is refering to not being able to place your own music as the music for a created level which would indeed be a major copyright issue when you share your level with potentially millions of people.
The ps eye restriction is most likely part ps eye support and part preventing littlepornplanet. (I say prevention because people could still take pictures of their dicks, etc with their eye.)