Yes, it is oppressive. In addition to his reading to Lady Bertram, he's pretty well acting a part the whole time, tailoring what he says to what he thinks Fanny wants to hear, yet inadvertently revealing what a jerk he is at the same time. Examples are "no theatre at Everingham" and "half a mind to take orders".

It's bothersome to me that Edmund seems to approve Henry's thorough attack by busying himself with the newspaper in the corner.

I do find a little humor in this chapter though. When Edmund watches amused as Fanny starts paying attention to Henry's good reading, I'm reminded of back in the East Room, Fanny's rapt attention at Edmund's reading that part from Lover's Vows.

I find humor when Fanny says this to Henry.
“No, indeed, you know your duty too well for me to— even supposing—”