The problem I see with this mod is... Bully is revolved around close combat fighting. Games like GTA are more based on guns and long range weapons, which is why a little bit of lag won't affect the gameplay in multiplayer too much because you can't really notice it from a distance. But even in those games, like GTA that are professionally made by Rockstar themselves, the close combat fist fighting is laggy and annoying. So my fear is Bully multiplayer fighting may be annoying as well since the lag will be very visible, noticeable, and annoying. "Bullshit I fucking hit you!", "No you didn't, hey I dodged that! WTF?"
Though really it relies a lot on the players' internet speeds as well, but I don't think everyone here has good enough internet to handle it.
Still, other modes will still have potential, but I don't see close combat fighting in MP being fun.