You state it is a game about control a group of kids who manipulate the neighbourhood socially, economicially or by force. What else can I surmise from a statement like that, that the game doesn't involving bullying or intimidation of some form or another??
Does it matter? Your suggestion is that he should stop making the game because it may
"send the wrong message" to today's youth.
So when that same 7 year old kid who you just prevented from playing this game with some "bullying" in it, walks out of the game store with black ops 2, it's fine? When creating a game, limiting it to specific choices because some little kids might happen upon it is a very bad move. That's what age restriction is for.
And I doubt the game is aimed at kids, it'd be more on the teenager area of the market.