Yes, buffer-bloat is just a plain bug. RED and CHOKe are means to tickle sender TCP's congestion control to activate in a more progressive fashion, which is more network friendly and less likely to cause those TCPs to synchronise (i.e. all back off at same time, and all ramp up again at same time) if congestion is applied uniformly to most flows. As the queue size increases above the min-threshold, the probability of dropping a newly arrived packet linearly increases, until it reaches 1 at the max-threshold.
The problem with fixing buffer-bloat is finding an economic justification for reducing buffers. Other than in quite high-rate routers, memory for buffering is generally cheap and there's little economic incentive to not over-spec buffers. The crux of the problem is that it is not entirely clera what the correct smallest size is. Indeed that optimal size may vary for different deployments. If you make the buffers too small, your router will under-perform - especially in benchmarks in high-bandwidth settings. Making them too large OTOH is unlikely to cost you sales: few people benchmark performance in real-world scenarios, with congestion - except network congestion researchers.