The city isn't turning a blind eye at all, and there's no bullying. There's a conversation going on between the city and the private companies involved, in fact. They recognize that the coaches aren't permitted to use Muni stops, but there is currently no better solution - to eliminate them would greatly increase road traffic or choke Muni with the increased passengers.

This is a highly complex issue and you cannot pick on just one player. It doesn't help anyone.