Keep in mind that the game will have rpg elements soon. There needs to be some "low level", for lack of a better term, so the player has something to fight out of the box.
Every ship has a sort of redeeming factor, something that makes them useful even in later and larger engagements. Talons are fast, cheap, accessable, and act great as a nuisance when you have a carrier to support them. Many scoffed at the Hound but ever since the last AI update they've become very useful in harassing, especially if you have more than one.
For the Buffalo though, I can't say it has any advantage except being target practice and perhaps the odd experimental design. I admit that I've used them many times early in the game as fire support (and still do) and this is a job they can do relatively well, but once you get into the lategame they become incredibly mediocre, where even the Talon has something useful to bring to the field.
In short, I don't think the Buffalo is a useless ship -- it just needs a little love and customized weapons loadouts to perform well.
It needs a buff, no doubt, but if a ship requires very specific weapon loadouts in order to actually perform somewhat useful, then I'd go ahead and say that the ship is broken in terms of design.
I will try out those loadouts you mentioned though and see how it goes. Going to be very interesting.