Yes! This was my first experience with a bad adaptation - I saw it when it came out (I think I was 7?) and it pissed me off so much. The Falkor chases the bullies thing was just ugh. Falkor was far too dignified and the point of the book wasn’t about petty revenge on bullies, it was Sebastian coming into himself and becoming the sort of person who wouldn’t even notice bullies.

That line was not at all unintentional. It’s exactly the point. Some people suffer awful, horrible things, because other people want money. He’s making that baldly plain in an intent to shock you with it.