The problem is the systematic, agregate wussification of the youth of our nation. Do you remember when playground equipment was metal and wood? When scholastic aptitude was more important to grades than self esteem? When you could catch a bad bounce to the face on a grounder and NOT have lawyers get involved? When your personality dysfunctions were YOUR fault, your responsibility to correct, and not summarized by an acronym for which there was a pill to treat? When it was not abnormal to be expected to wait 6 to 8 weeks for delivery? When a doctor could tell you you needed to lose weight without fearing litigation? .... When people DIDN'T kill themselves because of bullying?
Kids have always been mean, vindictive little backstabbers. What's changed is the softness of the targets.
I actually agree with you, with two exceptions (which are bolded).
First, an expansion on your subject and the parts I agree with. I work with my hands. In many ways I am effectively a plumber (that does more exotic plumbing.) Its somewhat hard manual work, but its not as difficult as something like construction work. I think part of the problem is that too few people these days do hard manual labor, and fewer kids do it. Building something with your hands is one of the most truly humanizing things you can do. To take an assortment of items that alone have little purpose, and to create something of value that wouldn't exist without your interference is a great feeling. I think the death of woodshop/autoshop/*shop in high-schools is sad, and I think too many of the kids in this generation (which somewhat includes me) get away with spending all their time creating ephemeral objects through computers, or just experiencing things others have made (gaming for example).
Growing up and never creating anything of value will lead you to believe that you have no value, which, sadly, is kind of true. Boy Scouts did a hell of a lot for me as a kid, knowing that there were things I could do that no one else could. It still pissed me off when people gave me a hard time, but having a core self-esteem to fall back on was critical.
Maybe this is enough for many cases of bullying. From the story linked, some of the bullying that occurred went well beyond this into the realm of wholly unnacceptable. The school should have done something to stop some of this. If the bullying had been a bunch of white kids using racism against a black kid, that would have been incredibly innapropriate right? In the case of that girl there are similarities. Basically if you are raised in an intense enough level of bullying it is almost identical to systematic racism, and it will have the same effects on the psyche of a person in the long run.
Now, on to the parts I disagree with. First, the bullying to death. Well, I guess what I said above covers that. I think that there are instances where it isn't just a matter of 'suck it up' or 'its all just a part of growing up', where it is tantamount to a crime. I don't know where you draw that line. The girls making jokes at the girl's funeral may be an example, but to be totally honest, me and some friends made jokes about a classmate that died (to be fair he wasn't a victim of bullying, he was driving a little recklessly.) Kids can be messed up.
The other part I disagree with (somewhat) is the personality disorder. It depends on what you are talking about, but there are things that really do need to be treated at a young age, and for a long time people didn't understand these illnesses and treated the affected individual incredibly poorly. Examples would be BAP (Broader Autism Phenotype), Dyslexia, and certain types of depression to name a few. Guess you weren't talking about those, but back in the day they would have been considered a personality disorder, so maybe some of the stuff you are talking about will one day be understood to be a much more serious condition.