First off, I don't think Buddhism even has a notion of "bad". It recognizes that there is suffering, but it doesn't say suffering is bad; it merely says, matter-of-factly and without judgement, that suffering is a consequence of desire. In order not to suffer, the Buddha teaches, one must (among other things) be in accord with and accepting of one's circumstances, whatever they may be. Buddhism is very practical that way; there's the old saw about the Zen master who quipped, "Before enlightenment: chop wood, carry water. After enlightenment: chop wood, carry water."
When "bad" shit happens, in that light, the suffering one experiences doesn't come from the thing that happened, but instead from wishing things were somehow different than they are. When you do that, you're diverting your awareness and mental energy from the reality that is manifest and present in front of you, and instead focusing on something that is not only not real, but can never be real.
And when you do that, you completely miss the fact that, up there, on that ledge, a lone flower has somehow managed to survive all the carnage around you. Had you not been preoccupied with wishing the world was other than it is, that flower would have reminded you that, even in the presence of destruction, life and beauty are resilient, and will ultimately triumph.
Except, it isn't. It's worse than you can possibly imagine.
Over 6 million children under the age of 5 died last year, mostly from disease. That's a Hiroshima bombing every week, killing only children under the age of 5. In the time it's taken you to read this paragraph, a handful of children will have died in terror and agony. Their parents will be filled with grief and guilt for years, if not the rest of their lives.
That is suffering, and it is bad. And no amount of platitudes or pretty flowers on a hillside can make up for it. If anything's in charge of this cosmos, they've got a hell of a lot of explaining to do. Of course, it would be satisfying to point a finger. Reality is more frustrating: The universe is indifferent; horrifically so. For example, nothing in physics prevents a tiny protein-encased strand of DNA from killing 400 million people in the 20th century.[1]
1. http://en.wikipedia.org/wiki/Smallpox
Note: Parts of this post are paraphrasing an argument originally made by Sam Harris. Credit where credit is due and all that.
Play with words enough, and you can claim the world is a beautiful place. Except, it isn't. It's worse than you can possibly imagine.
The beauty of the world and the morality of what happens in it are utterly orthogonal. You're conflating those things in a way that, frankly, I find rhetorically cheaper than much of the sophistry that calls itself theodicy, and which, it appears, we both disdain.
That is suffering, and it is bad.
No, it's not; it's experience. It just is, whatever you may think of it, and what you think of it doesn't change the thing you're experiencing one whit. Calling an experience "bad" — or anything else that makes a moral, aesthetic, or other kind of qualitative judgement — is something you did, intrinsic neither to the experience, nor to the thing being experienced, but only to you. There's no such thing as "bad" anywhere in the whole universe except in your mind.
Buddhism isn't about trying to make unpleasant feelings "go away", or pretending they don't exist. Of course they do; you're feeling them! It's about being present to those feelings, rather than wishing they weren't there, and recognizing them to be as transient as the pleasant feelings and everything else in life, including life itself.
And I think joy is a better word than beauty. Beauty kind of implies to me objective truth, but joy can be found even in unimaginable trying situations where no objective person would see beauty.
I guess at the end of the day, all you can really choose is to believe in something or to believe in nothing.
I say "look at the flowers on the hillside, nothing can cancel that out"