I dealt with a lot of bullying in high school, and that was much more serious then the shit people piss and moan about on the internet. I got shoved around, threatened, and even once got a nice big gorilla fist to the face. What parents, teahcers, and any other responsible adults really need to do is teach kids to stand up for themselves. Once I started standing up for myself, things really did get better. I was scared as hell and shaking inside every time I did it, due to the fear that these big guys were going to beat the living shit out of me, but oddly enough I only got hit once in high school.
I had a couple of run is with 'Cyber cheats'. I traced their IP's, got as much info as I could (including a phone number) and called the cops repeatedly (in 2 countries). They were not the slightest bit interested. Rather like the ' throw your lighter and aftershave in the bin' at airports - it only affects ordinary Joe public. Those intent on ' doing the dodgy' will. The biggest effect it will have is to silence anyone ' they ' want. There are already laws in place to deal with copyright infringement, threatening behavour and just about every other thing you can think of. Give up freedom for security and you put yourself in a cage.