It's also worth mentioning that telnetting to port 25 is not the same as telnetting to the Telnet service on port 23. In other words, the user who telnets to port 25 will still not be able to do any more than what a user with an email client can do. It is still just the mail service they are interacting with. If they can get a bash prompt by telnetting to port 25, then there is something very wrong.
The telnet client is just a generic networking utility, which can interact with any open port in TCP/IP. But that also means it is still limited by the service that is listening at that open port.
You can even telnet to your webserver at port 80, and as long as you issue GET or POST requests, with the right headers, you will see the HTML contents of the web pages scrolling past, and you can manually do everything a browser does automatically. It's kind of fun, actually, if you want to see the HTTP protocol from the inside.