Hypocritical? I think not.
These words indicate some sort of moral judgment regarding the content. Apple is a corporation and behaves like all corporations - it follows the money regardless of ethics.
Don't confuse inconsistency of approval (which will be based on what Apple thinks its consumers' morality might be) with morality. In the same way, Walmart maintains a "clean" product line in its shops because it is selling to people with children, while at the same time hammering down its purchasing costs to the point of reducing suppliers to absolute poverty. This is not ethical behaviour, this is pragmatic, situational ethics.
Regardless of what the law says, corporations are are *not* people, they are a legal fiction. They are inherently unable to make moral judgments for either good or evil. Their actions tend to be consistent with lowest common denominator ethics because that gives them the widest market and the greatest income.
Apple's premium product placement means that it doesn't attack the widest market possible which allows its staff to (slightly and occasionally) make non-lowest common denominator sales decisions. This is unusual and may be reversed, but it fascinating to see the discomfort this decision causes to some people. "If I can't get every obscenity possible on my iphone then Apple is rubbish and I won't buy their junk."
And on a slightly different note... the album is called "The Downward Spiral," what makes you think its a good idea to follow them all the way to the bottom? Look at the lyrics. Who would have thought that there is so much business to be had from selling self-loathing and a desire to remove yourself from the gene-pool? Perhaps a Darwin Award should be considered.
Its interesting that The Downward Spiral is around 15 years old. Mr Self-Destruct appears to be keeping late. Life seems to be just too good to end it all just yet. Now there's hypocrisy for you. Oh wait, this is the music industry. It isn't real, its just business. Nothing like Apple at all.
At least with Apple you know the agenda is to make money. Personally, I find the music industry with its pretensions to reflecting "real life" while financially preying mostly on teenagers rather more disgusting.