You're spinning a little bit too much hyperbole. It would be nicer for the entrepreneurs if ABC didn't take a cut but clearly they aren't that nice. However they are getting 15 mins of national exposure to a captive audience - that's worth something.

Doesn't YCombinator give pittance amount of capital for an equity stake in the companies it invests in, with the value proposition being largely in introductions to VCs/Angels and some strategic help? Are they coercive?