Some of your information is good there Gator but not all of it. Heterotrophic bacteria are in fact essential to the cycle in the sense that if the heterotrophic bacteria weren't present, there would be no ammonia, and therefore no cyle at all.
I agree that they are around 1,000,000 times less efficient at the oxidisation of ammonia, and most heterotrophs are incapable of oxidising nitrite, however they will only undertake nitrification in an aerobic environment ie. the water column, if at all (they will usually only do this under laboratory conditions).
Similarly, they will only undertake the process of dissimilation in an anaerobic or very low oxygen environment, so the bacteria floating in the water during a bacterial bloom are technically incapable of denitrification (also known as dissimilation) as their environment is invariably aerobic.
Some heterotrophs are strictly 'aerobic', but some are 'facultative anaerobic' which means they can adapt to either aerobic or anaerobic conditions depending on their environment, but will perform different functions in each state (Usually if not always nitrification in aerobic conditions and dissimilation in anaerobic conditions).
The only real threat of a bacterial bloom is that the free-floating bacteria will be in an aerobic state, and therefore oxygen hungry. I have never heard of fish dying because of oxygen depravation during a bloom, only due to the ammonia spike which is often caused by these blooms (most people think that the ammonia spike causes the bloom, but in fact it is the other way round), however that is not to say it can't happen.
Water changes aren't essential during blooms, although as you say they will help with oxygen saturation, but wouldn't it be easier to add some extra aeration instead of changing water all the time? I believe that in most cases, probably neither is required.
Even if water changes are performed, as you say, the heterotrophs reproduce in around 15 - 20 minutes, so that means a 50% change would be required at least every 15 minutes to stay on top of things. Not very practical to say the least. As i said above, the only real ways to deal with bacterial blooms is to sit it out and wait, or remove the build up of organic waste which is causing the bloom in the first place.
BTT