The best part is how Apple decided that the Publisher sets the price, and Apple gets 30% regardless of profit margin. Apple also stated that they were able to price match anyone who undersold them, and they STILL get 30%, pushing losses onto the Publisher. At least with Amazon, they ate the loss due to their price fixing.
Edit: Fixed last paragraph
Apple didn't have to bully the publishers in general, because this deal was a big win for them.
Jobs even admitted that Amazon would profit Publishers more in the short term, essentially admitting that Apple was going to make Publishers eat losses by price matching Amazon. Then, once Amazon was forced to increase prices in order to make a profit because they've been squeezed out of their Monopoly position, then the profit starts rolling in.
Very illegal, and also leaves Apple unscathed because they don't take any losses. You can understand how bullying would be required in order to get some reluctant Publishers to conform.
And how's that a "scare tactic"? Sounds like something entirely reasonable for the publishers to consider.
Also, Jobs also stated rampant piracy would be a major issue if attempting to sell E-Books through alternative means.
If Apple comes to them and tells them they are the saving grace of the publishing industry it isn't a scare tactic. It's just meaningless bluster. Microsoft, Google, Amazon et al would be saying exactly the same thing. It doesn't mean anyone has to listen.
So in what way is this bullying again ?
"You can either join us, or we'll collectively squash you."
TL;DR: Lose money when Amazon starts taking a bigger cut, or lose money due to piracy.
Not really. He was certainly encouraging them, but both the charges and the findings here are that the publishers themselves were actively colluding and looking for pretty much exactly what Apple offered before Apple offered it. The conspiracy didn't start with Apple, it was just that Apple's active, enthusiastic involvement was necessary for it to move forward.