Very detailed analysis. I agree with the claim that "fewer stops, faster service" on the surface. However we'd have to see if that's truly the case, as cities have red lights and traffic, so the bus stops anyway ... I believe, taking this into account, the difference might not be that significant.
I'm also curious how bus stops interact with timed lights. Presumably each time the bus stops, it gets kicked back to the next cycle of green lights (which might be a low-single-digit minute delay).
Hopefully there's a traffic engineer in the audience who can give the real answers.