I still don't understand the underlined part? The way I'm reading it is: if you update the firmware then height and range will be restricted.
You will need a data connection to the Internet for your smartphone or tablet when you log in, in order to verify the account information and activate the updated software or firmware. If this activation process is not performed, the aircraft will not have access to the correct geospatial information and flight functions for that region, and its operations will be restricted if you update the upcoming firmware: Live camera streaming will be disabled, and flight will be limited to a 50-meter (164-foot) radius up to 30 meters (98 feet) high