Google seems aim to "protect" their users from things like pop-ups, dialers, and they don't want ads running to sites that offer illegal services, products, etc...
Bottom line, trying to defraud Google by playing games with AdSense, linking to anything illegal, or dialers (which I may wrongly be assuming are designed to bill people when their modems dial in to some form of paid content, sometimes without their knowledge) is that fastest way to run into trouble running AdWords or using AdSense.
There may be legit uses for dialers but there are probably enough problems with them that Google prefers to keep sites with them out of AdWords so as not to have to identify legit dialers and fraudulent ones or be involved with them in any way.
Its possible to advertise most anything as long as the end result is not in some way likely to end up with someone defrauded or breaking some law in some juristiction.
Never heard of any reinstatement policies for AdWords, just SEO'd sites that stepped over the line.
for me is nonsense google europe review - when I have targeted ads to US market they should review them using US proxy or such ads should review US team because its very simple make geotargeting and when they review from Europe they see different site than people from US.