Well, if you're being bullied its usually for a reason. Although it might seem senseless, a "bully" finds a target for a reason.
Ex:
-You smell (wash you're filthy ass)
-You're weird (Take you're LARE costume off when you go to school)
-You're Fat (put down the crispy creams and twinkies..maybe hit the gym"
-Homo tendencies (if you wanna show em' be prepared to get called out on em')
-Disabilities (sorry nothing witty, the bullies are pricks for this one)
-You're name (thank mom n dad for naming you "Dick")
-You're a dumbfuck (drop the sticks n' pick up a book"
-No friends (if any of the above is you, this is why you have no friends...which will just bring more pain because they will make fun of you for having no friends. A viscous but necessary cycle =).)
-ETC...
Now I have given a list of reasons why kids get bullied with a remedy for the issue.
Bullies are simply the ones that inspire change. If there were no Bullies, no one would have to stick up for themselves...creating a world of pussies.
So to a very high extent of see no problem with them. I personally would never make fun of someone that has a disability of any kind.
Now if you don't want to "conform"..."stand up" for what you believe in and quite possably take an ass beating. But you see the kids getting bullied usually don't have the balls to do this...I can go on forever lol.
No, it would not create a world of pussies. It would create a word of nicer people, who do not feel the need to pick on others over petty issues. If anything, a world without bullies would be better. If there were no bullies, it would be irrelevant whether someone is a pussy or not, it just wouldn't matter.
Sure, bullies can inspire change, but in a very negative manner. For example, Gok Wan inspires change, but his methods are far more fair and encourage individuals to change because they want to and feel it would make their lives nicer. Not because someone is going to rip them to pieces every day until they do.
As for your list of reasons. Why should anyone be picked on for any of those things (except smelling funny-I agree with you on that front)? It is the choice of the individual as to how they behave and what they do. People shouldn't question that or be mean about it. At the end of the day, bullies are the ones with problems, because they can't deal with people being different to them.
Anyway, in response to the question the original poster asked, of course, bullying is a very bad problem. Personally, I have been bullied quite a lot. Its a really nasty experience. I was at the point of killing myself 2 years ago because of bullying... There is no reason to do it, if you cannot deal with people being individual, then you can go and live in isolation. Don't bring your stupidity and nastiness into other peoples lives. It can mess people up a lot. It can ruin your confidence, your view of life and your view of other people. I don't agree with anyone's reasoning for bullying, it's just plain wrong!