Quite so. Personally if I were a Christian rock artist I would be a little bit pickier than that about what kind of compilations I licensed my stuff to, but if God's word is in there side by side with the raunch it is still guaranteed that it won't return void.
By the way how does one google for "POD" and get anything other than scads of references to whales and peas?
Google "Payable on Death" (which is what POD stands for)