I'm going to parody. Can they threaten to remove sites from their index if you don't write "I love Google" on the top of every webpage? Can they threaten to remove your site if you do not ban the bingbot? I think we would agree that would be abuse of power.

If they want to remove sites from their index because those sites are no good for their index, etc. ..Fine. But, if they remove sites for reasons other than 'We don't want these sites in the index or in the SERPS,' that is a problem. In this case, I am arguing that they don't want to remove those sites from their index. They want those sites to comply with their nofollow policies. I don't even have much a problem with these policies. I have a problem with Google being able to set policies and enforce them directly with the threat of removal from the index. It is almost equivalent to the threat of removal from the web entirely due to the way people use the internet and Google's role in that. Many sites get more traffic from searchers Googling the name of a site then direct traffic.