Ah yeah, I've seen this before on the UNIX/Linux versions -- something in the -c (create) or -u (update) breaks the logging in DB2, and it can't activate the database.
I suggest that everyone spends some time reading up on how your database does logging to gain a deeper understanding of how to configure and use them, as well as the features and functionality of each method. Not being able to restore transaction logs after a database restore is a critical failure, so it needs to be tested and re-tested regularly to make sure backups are complete and usable.