No, that is absolutely not how Intel used to do it. Anyway, since they can't legally and so openly do what they used to do anymore, they have learned and got really good at going after the decision makers in a company. While still not legal in every aspect, it's like illegal prostitution - it takes two and if both individual parties are happy (who cares about the family or the state), you rarely get into official trouble.
They absolutely did do this. It is nothing more than a volume purchasing agreement. The rebate system as I described is legal. Intel is NOT the only company to do it. Many other companies do this as well as an alternative to volume discounts. Volume discounts require a large purchase up front and most companies shy away from buying a ton of inventory.
The other crap about incentivizing purchases of only Intel products is not legal.