Yeah, I think it was the right move. They shouldn't have called it Bully in the first place because that's extremely bad marketing. If you made a game like Grand Theft Auto and came under fire for it, then releasing a game called 'Bully' with so many problems in schools right now (Columbine Tragedy, Real Bullying, etc.) is just not a good move. However, intelligent people don't base the game on its title and look into it more.
In short...
Changing the name was the right choice for Europe.