I've encountered a few bullies. No, they don't back down. There is always a fight. Even if you do win you take your licks. Sometimes you don't win but the bully will respect you and not get into that shit again. In my experience they still are a bully but they don't like the rick/reward ratio on those that stand up and dish out some punishment back.
To lurking DUchebags, that is why in the international arena one must lead with strength, have the means to back it up, and have your enemy know you are willing to take some licks. The shit is hitting the fan because our enemies know that Obama does not have the will to back up his positions...unless you are a conservative.