It was a defensive alliance to combat potential future Persian aggression.
They formed a counter league: the Peloponnesian League.
The Athenians ended up demanding money as tribute to pay for the fleet of the League. This was the way the Persian system worked.
Thucydides; Diodorus Siculus; Plutarch. All were Greek (no Persian sources) and later than the events (Diodorus and Plutarch very much later). This may affect the factual accuracy of the accounts.
Xerxes died in 465 and his successor Artaxerxes showed little interest in continuing the campaigns against the Greek states.
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