What's wrong with it? Really? I myself not having played it.
Is it because it's based on a tragedy? Like that of the Titannic? That space ship that blew up, with the teacher who was an astronaut (can't remember the name of the mission, sorry)? The various mobster stories where people got gunned down for anything - even the innocent? A kind of personal terror that can be equated to the Oklahoma bombings or 9/11 - albeit in a much smaller scope for those not involved.
Because it involved real life murder and suicide? Like the various wars and conflicts we've heard about? And an equally long list - but I'm going to cut it down to get to the point...
We have movies - and/or games - about all of these things. And the least of them have any true good intention in the making of them, even if there is no political reasoning, there is often the "I WANT AN AWARD DAMN IT!!!" mentallity - or simply "Heh, this would be cool".
Sure, the game - from what I hear from people who were offended - didn't actually delve into any story or plot. Didn't tell the events really, and just slapped on a name people would know, and most likely doing so in an attempt at humor. For all I know, if it was named something fictitious, and took place in an office building with only graphical changes, it might be a deeply gratifying game, I haven't played it.
But sadly, except for those who are offended, and those who think it's funny or entertaining, it really doesn't matter. I think Titanic sucked. But that's my oppinion, everyone else loved it. For all I know this was meant to mean something, but still...
it's only a game.