A mix of Fridge Brilliance and Fridge Horror; during JLA/Avengers, Cap's main 'concern' about the DC Universe was that it felt like a world where the heroes basically lorded it over the civilians they were meant to protect, depriving humanity of the chance to progress on their own. While the Squadron at least superficially try to connect with the people they protect, such as Hyperion's civilian identity as a high school teacher, they have so far shown more concern with just taking out their enemies rather than truly helping people, with characters such as Silver Witch and the Hulk automatically condemned as villains where the Avengers were always willing to help these others even after Wanda depowered the mutants or the Hulk's actions upon returning from Sakaar. While Blade has observed that this world at least appears better on the surface, when looking deeper it becomes clear that the Squadron are all but explicitly in charge of this world, humanity dependent on their protection so that they can't truly do anything the Squadron don't approve of. Worst of all, the Squadron give no sign that they are willing to 'help' beyond killing the threats in front of them; as a particular example of this, while Peter Parker is presented as the Jimmy Olsen equivalent to Hyperion, when he undergoes a mutation into an alien life-form Peter swiftly attempts to kill himself to stop his mutated form hurting others rather than asking Hyperion for help; in the canon timeline Peter could have asked the Fantastic Four for assistance, and in an equivalent situation Jimmy Olsen could have called Superman and been sure that the Man of Steel would help him.
Phil Coulson used a Cosmic Cube to change reality, turn himself into the President of the United States, and the Squadron Supreme enforce his rule by going against all supervillains and superheroes alike, anyone capable to challenge them is a threat by default (even the Watcher, who never does anything but watch). We have seen little of Coulson's presidency, so who's to say that this is limited to other superhumans? Coulson is likely a President Evil, maintaining the democratic procedures and institutions simply for tradition, while the country is a full dictatorship in practise.
