They're actually losing money. 50+% of the people are going for the 64GB model which prior to the iPhone 6 was a $200 upgrade from the 16GB model. Now it's only a $100 more, and since the 64GB model costs more to make than the 32GB Apple is getting a smaller profit margin from the users that stood at the second tier.
What's baloney is the "users might find objectionable" reason. The app is not forced on anyone, and its users knew what they were getting when they decided to get the app. If they then find the material objectionable then they can delete the app themselves. What's next, the pulling of Angry Birds because a avian group finds sling shooting of birds into structures as objectionable?
Except now Safari has ad blocking which is going to force people to make apps and either charge for it or use iAd, and now Apple dictates what can be on a app or not. Is this the beginning of thought control?