Well, seeing as how I am mostly a lurker, I feel I can objective. But I could be wrong... so bear with me.
I don't think LJ is a bully. He can be somewhat callous, but I don't think he does any of it to hurt others. He will cry bullshit on anyone he thinks deserves it, for various reasons. I see bullies as those that hurt others for no reason just to feel better about themselves.
If someone is playing the "poor me" card (or is just full of it), he will call them on it. That doesn't mean he is a bully. I think it sometimes makes me post better because I know if I am being a dumbass I will get called on it, which is a good thing to me. And he is a equal oppurtunity teaser which to me means that he doesn't single out certain people unless they do the same stuff time and time again. That isn't his fault.
Also, if he calls bullshit on someone, they take it personal and then keep saying how "LJ hates me" which just drags the arguement on and they usually try to make LJ out to be the bad guy. But I haven't been subjected to his teasing much since I don't post things that could be construed as full of bullshit or something similar. At least I do my best not to.