That does seem nasty. Although from their perspective it makes a twisted sense that since they can't compete with YC on benefits to the startup groups, at least they can pressure them into accepting, and not lose out on the investment opportunity for themselves. But that just says that at the root of it, they have themselves and not the startup's best interests in mind.

Of course everyone has their own interests in mind, but what seems to make YC's self-interest compatible with a founder's self-interest is the degree of freedom afforded the founder. As you said in one of your essays, investors can often suffocate a startup by not allowing enough freedom, which isn't in either of their best interest.