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+1 from me too; I agree the current API of PyBytes_FromObject is ugly. 
Is there still a need for a separate C function for creating a zero-
initialized bytes object from a Py_ssize_t or a Python integer? It's a 
fairly simple operation (PyBytes_FromStringAndSize + memset), so perhaps 
it doesn't need its own public function.
I'm not sure about the extra PyUnicode_Check: this seems to go against 
Python's philosophy of duck-typing. After all, the empty string *is* an 
iterable all of whose elements are integers. And this check doesn't cover 
other, similar, cases: for example, list('') will still be converted by 
PyBytes_FromObject, while list('123') won't. What's the benefit?
If this check is going to stay, there should probably also be a unit test 
for this behaviour.
Apart from the reservation about the PyUnicode_Check, the patch looks good 
to me. All tests pass on my machine (OS X 10.5) with this patch applied.