Not sold on this argument. First, somebody has to play the games. So, you have to put somebody out there. If you are consistently drafting busts in the first few rounds, then by necessity you must play some later round players and UDFAs. Second, it's not generally the case that these late rounders and UDFAs are All-Pros that dominate their positions and keep an above average 1st rounder on the bench with their play. It's more the case that they play because the Kiper hyped bust is just a terrible football player.
The Bills have hit on and developed some bargains though. Jason Peters, Kyle Williams, maybe Stevie Johnson, which is a stroke in their favor and some nice work by past/current coaches. It's not a unique accomplishment, but at least they've done something right with a few of these guys.