As a victim of bullying for much of my life to date, as I'm sure many of us are, I find this game slightly offensive. I believe there are two sides to this arguement, however.
Firstly, the game could move bullying from the school-yard into the interactive game-world, thus reducing the bullying in schools. This, I believe, is an optomistic view. I'm sure there will be some, in fact many, people who stop bullying others in real life after playing this game. But, in contrast, it is also true that many people will start, or increase, bullying because of it.
I am not going to object to it's being released to the public because I am not so concieted that I believe that my own opinions, feelings, and beliefes are the only correct ones; but I do hope - forgive me if I have not done my homework - that the game should have a rating making it suitable for people of a minimum of 18 years old.