Assuming supervision was applied using Apple Configurator, yes, it will be removed when a device is fully restored.

Does this completely disable Configurator Supervision?

When a device is wiped as you described, the supervision profile is taken off of the device as well. So in it's current state, it would be without that profile. You would have to plug that device back in to the configuration machine for it to get the profile again. Since the configuration machine already knows the device, it should just install the profile without wiping the device (At least that's what I have seen in practice).

What I tend to do is set up the restrictions area on the device so that they can't just wipe a device on their own. I let the MDM take care of the restrictions in there, but I turn it on just for that little extra bit of security.

What restriction would that be, I don't see anything in relation to restoring.

Thanks.

What restriction would that be, I don't see anything in relation to restoring.

Thanks.

Sorry, I should have been a little more clear. When you turn on Restrictions in Settings -> General -> Restrictions:

That will automatically lock people out of being able to Erase All Contents and Settings from the Reset menu. When they hit that, they will be presented with a pin number that you would have set up in the restrictions area.

Can that be done through Casper? Or does it have to be done at the device setup, also does this prevent being able to restore the device?

Sadly, it's something that is put in manually at device setup.

When you say restoring...you mean through Configurator? Or through iTunes?

Itunes.

It looks like a restore would be possible on iTunes from a user. That could be stopped though if you have it set up to not allow the iDevice to connect to machines other than the supervised device. Unless you want it to be able to be restored... Not sure what direction of thinking you are looking at there. :)

But if I select that they wont be able to sync music and such from their own machine?

Here is workflow
Configurator for supervision profile and intitial wireless enrollment
Casper Enrollment

Give to user:
Do not want user to be able to Restore from itunes but would like them to be able to sync with their itunes info.

Correct, they wouldn't be able to sync the device then to iTunes.

What you are looking at is a balancing act. Not everything with the iOS devices is manageable right now. It's gotten better throughout the past couple years though, that's for sure.

Are these devices owned by the user or owned by the company? Either way, there should be some form of policy in place about not restoring the device, especially not without consulting the techs in place.

Owned by the company and there is a policy in place about restoring but you know users.