Hi,
While there is no configuration support to hide the icon, it can be done with a small bit if CSS added to the Project Center page (in a content editor web part):
<style type="text/css">
#Ribbon\.ContextualTabs\.ProjectCenter\.Home\.Apps {
display: none;
}
</style>
Otherwise all users of Bulk Edit require full reporting database access (ie all projects), if a user does not have access to modify a particular project they will not be able to make changes, unfortunately however that is not a supported scenario and will result in errors.