From the research I have done, yes, blood parrots are like labrador retrievers, they will eat until they make themselves sick....
Another thing that I've mentioned before, and could just be due to my lack of experience with this particular fish, are the black spots. Based on what I have read about blood parrots, they turn black when they are stressed out. I wasn't able to find any useful sources for this, I just googled "blood parrot black stress" and I see people talking about it, but it's not like anyone has written any academic papers about it so I don't think there's much scientific stuff to go off on.
Again, I don't actually have my BP's yet so I don't have experience on this, but the juveniles I've seen at my LFS are all bright orange, and cinders has a lot of black on him which I don't think is the normal coloration for the fish. I'm not sure if a rescape would help or some other intervention to ease the bullying.
On the other hand, it is reassuring to hear you say that things are getting better
Maybe it's just a time thing at the end of the day