I can use that screwdriver to try and hammer in a nail, sure. It probably won't work well and I'll likely break the screwdriver or the nail or the other purpose they're both serving.
That's not the fault of the company that designed, manufactured, and sold the screwdriver, though.
But they won't stop me from doing that either. But they did design the Phillips screwdriver to work optimally with Phillips head screws, so that's what I actually bought it for and use it for.
The EULA doesn't prevent you from wiping your iPhone and doing anything with it. It's your hardware. You won't see any warranty help after that, but that's not their problem at that stage. You can even try to use your iPhone as a hammer, but I wouldn't recommend that either. It wasn't designed that way, but you're totally free to do so.
Personally, I bought my phone to use it the way it was designed, because I liked the design—not in spite of it.
I still amazes me that people don't have problem with computer hardware+software being closed, enforced, EULA driven.
And at the same time they expect to be able to e.g. use knife to open a box and not only cut bread (enforced by EULA).
This is similar to what is happening right now with the right to repair of tractors.