The problem is that you can't squeeze an object without resorting to animation. So instead they went for crushing, which carries destructive undertones. A lot of people have strong emotional attachments to objects like pianos and vinyl players; destroying them is a powerful trigger.
If this had been done with animation, with some djinn magically squeezing everything into an iPad, it would have been just fine.
This said, there is no such thing as bad publicity - here we are, talking about the umpteenth version of a product we would otherwise take for granted. The ad might have been distasteful but it did the job.