CW, I know we've discussed this before, and I only say it's Apple because I've seen emails from the iBookstore to Lulu about the problems.
And I've never doubted that, as I've seen the same claims. My point, which you keep skipping over, is that there seems to be outright hostility against both lulu and it's users, which Apple doesn't apply to other distributors.
Essentially, Apple changes their restrictions based on how much business a site brings them. If you bring in a few hundred, the rules are incredibly strict, if you bring in thousands, the rules are loser. If you bring in hundreds of thousands, the rules are hardly enforced at all.
However, despite that interpretation, their crazy-assed capitalization guidelines are ONLY enforced on lulu.com, no one else, while D2D, a completely new site with absolutely NO purchases to offer, skates by with fewer restrictions than each of the older sites.