I don't think we let him jerk us around. We let him put forward his ideas, and when we questioned it he left immediately.
You asked for opinions and you have mine.
If your take-away from this situation is really that you
weren't jerked around by a guy who came in and...
-demanded his setlist and got it
-threw out your setlist
-drove a wedge between your two guitarists
-Drove the other guitarrist out of the band, leading to it's breakup
...then I'm not going to try and argue you out of your opinion.
I'll leave you with this.
Next time you are in a group and are considering adding a new member, first get on the same page with the existing members about:
-The songs and kind of songs you want to play
-How much directional input you want to take from the new member
-What the goals of the band are.
Then you won't be such easy prey for strong willed control freaks like this drummer.
All this said, don't beat yourself up about it. It can be tough to spot and deal with an egomaniac/autocrat/sociopath (not exactly sure which applies to the drummer) when you're in the midst of the situation and similar things have happened to the best of us. Chalk it up to experience and do it differently next time.
Good Luck!