I had a different take on the bully issue than you did. I think what Erikson was condemning there was the cyclical nature of the damage, especially in regards to the dangers of confronting a bully with just a larger version of such violence. He didn't seem to be presenting Snell as an embodiment of evil as much as a victim who acts out his own hurts upon others. He is a bit "broken" as well, which perhaps may be a small-scale parallel to others that are emotionally (physically?) "crippled?"