> Dropping packets tells the sender to slow down. But in this case, the sender is already sending at the proper speed! You don't want them to reduce throughput, you just want them to smooth out their sending. But dropping packets doesn't tell them to do that, it just tells them to slow down.
TCP sending is smooth by design, check the literature.
If it is not TCP, yes you are right this might be too drastic and harm throughput. But it's only because your application does not behave. And it will preserve latency. And the bandwidth lost by killing the burst might be reused by better behaved applications.