I have seen quite a bit of debate on this subject, and I think its a good time to revisit it.
First of all, there are different types of bullying. Bullying to physically harm someone is not acceptable. There is never a situation where physically harming someone is okay. However, verbal bullying can in some cases build character in the person being bullied. It can help children become smarter, and make them stronger, especially when they stand up to the person bullying them.
Article here:
http://parenting.blogs.nytimes.com/2...stronger/?_r=0