So, his strategy basically boils down to "My way or the highway".

Well buddy, not all managers are spineless like the ones you have in that startup and if you tried to pull this trick on them and to strongarm them into submission, they'd kick you out the door in a heartbeat esp. when you're a lousy junior dev who's learning on the job according to your statement.

I've been very critic of employers and business owners when they describe that some employees have a mercenary attitude when it comes to the workplace and I'd always feel offended by that but when you read an account like this where certain jerks boast about their ability to bluff people and fleece them of their money in that disgusting manner, you come to realize that they might have a valid reason behind their worries and reservations.