While I do agree with the fact that there need ot be harsher punishments for bullies, I will also point out that many times they have issues as well. I have dealt with being bullied. I started out as a scared little kid, and horses were the thing that helped me. (along with an older male cousin that taught me to fight) There are many times that both the bully and the victim need someone to talk to. Many bullies are abused in some way by adults or other children.
I feel that parents should definitely monitor their children's internet usage more strongly. My parents did. They knew all my passwords until I was about 17. They knew who I talked to, who I argued with, and what most of it was about.
They never had to interfere for me, but I have had to intervene on my younger sister's behalf. The mother of a girl she was arguing with came and was screaming in her face at a baseball game. I just about went to jail, but I called over some other adults (I was only 18 so still difficult for me to get the idiot to back off). My sister was 15, and this woman was angry because her daughter didn't like that my sister was dating her ex. Kids can be stupid, and it gets worse when adults get in on it.
I will not have my kids having free access to the internet. I will have passwords, and if they change them they will not get back on until I have the new password. It worked with me, so I think that it sounds like a decent plan. If I ever have a child being bullied I will talk to them about coping skills, and I will hopefully have a younger family friend, aunt/uncle, etc to reinforce what I tell them.