I think Bully Ray is fine where he is at the moment. He's locked in a storyline where the idea is that he gets his comeuppance and gets bullied back in return. But Bully Ray is a very general character and he's immensely good at what he does, so as soon as he's not locked in a feud he can turn it on and with ease chase for a world title. I think Bully Ray would make one of the best old school antagonists you could envision of anybody working today if he was given a shot against a top face and the title. Storm, Aries or Hardy would all conceivably work very well.
But right now he doesn't need to do that. Right now he needs to keep his bullying tendencies on a leash and locked into the story he's currently involved in. As soon as he gets out, though, having the Bully part of Bully Ray really come back into practice would be a logical first step to moving back onto the bigger and better.
I've said it before. but one thing TNA is constantly making me do is to question the boundaries we set for the prime age of a wrestler. Sting is going strong and delivering solid work on a consistent basis week-in, week-out, Devon is a well over face as the TV champ and a good holder of the belt, Hogan can still do his thing well when needs be, RVD can deliver match after match, Daniels doesn;t miss a step and is a solid all round performer and then there's Bully Ray. Ray is miles better than he's ever been. And it all just came out of nothing. Now he's 40+ and arguably the best heel working today. And he did it all by just breaking thing back down to basics, be an ********, people will dislike you.
I think Bully Ray should and will bully more, just not right now. Right now it would be detrimental to a feud which I have very much enjoyed.