Actually, it's Mike thinking that he can be a total shit to Lizzie just so long as he doesn't touch her; John is there to remind him he is wrong.
Panel 1: We start of with Lizzie surrounded with toys without a care in the world; sadly, the hateful and hate-filled smirk on her selfish little prick of an older brother tells us her happiness is going to be fleeting.
Panel 2: This is because he smiles and whispers 'Dummy' in her ear; her shocked from tells me she knows enough Lynnglish to realize she's been insulted.
Panel 3: His next act of creativity and nascent genius is to sit on her beloved toy bunny as she SCREECHES in dismay.
Panel 4: He follows that act of harmless whimsy by sticking his tongue out at her as she clutches her toy bunny with a look of panic that doesn't belong on such a tiny face.
Panel 5: Next, he oh-so-causally knocks down the toy blocks she had built up.
Panel 6: Lizzie's HOWL of pain finally attracts John's attention; as he glowers at Mike, the little boy's bug-eyed frown indicates that he's somewhat confused as to why he's being punished.
Panel 7: This confusion lasts as he's being carried bodily away from the scene of his hate crime....
Panel 8: ...and persists after John SLAMs the door on the little creep as he plainitively wails 'But Daddy! I never even TOUCHED her!!'
Summary: Since nobody in the Pattermanse ever did any real parenting, Michael grew up thinking that he could take out his frustrations on the helpless and usually blameless person of his kid sister without any real blockage to his dickishness. Also, since he had stick figure caricatures when he needed a mom and dad to guide him, he never had a chance to develop a conscience like regular people so he never, ever twigged to how he affected others.