It is very nearly so. I would estimate that over 99% of bugs that I can reproduce in a debugger are fixable (at least at the level of a work-around that takes the pain away) in a single day.

Depends on your idea of fixed, I suppose. You can band-aid it in five minutes: append a message to the Low Space Notification that SMS messages will be queued.

Really fixing it would require something more intelligent about the way Android handles space, such as reserving an amount of the internal memory for "critical" applications, or moving caches to SD card. The reason caches aren't on the SD card, I believe, is something philosophical at Google. They're holding onto the belief that people actually swap them with some regularity, rather than using them as user-expandable internal storage. Why Browser should merrily suck up an 80MB cache on my tiny internal memory is beyond me.