This is one of those questions for which there is no "correct" answer. As
@Roger1973 has mentioned, there has to be a schedule to start with, and ideally the schedule will be robust enough to deal with occasional "hiccups" without interference from controllers. In London, one by-product of iBus was that the driver is advised if they're getting too close to the bus in front, and they can (in theory) regulate themselves. And yes . . . if a service is advertised as "every 7-8 minutes", and the entire schedule is running 10 minutes early or late, Joe Passenger won't see any difference.
The problems arise when a route has a "live" relief point . . . if all buses are running early, then at some point a bus will not have a relief driver available; and then the whole pack of cards, finely balanced, will topple. And what happens then? Chaos whilst the controllers sort it out!! Better to run to the schedule, with maybe a couple of minutes difference . . . no more.
The other point to note is that "low frequency" routes need much more careful management, hour by hour. If a route runs every 20 minutes, and one bus is running 10 minutes late, the last thing to do is run subsequent buses late to "even out the gap". Passengers on these routes (which, outside the conurbations, represent by far the majority of routes) will go out for the bus at "23 minutes past). If one bus is late, it's not good, but if subsequent buses also run late to even out a headway, then even more passengers get disrupted. It's usually better to leave the service alone, and hope that the schedule is robust enough to allow the next trip to depart on time.
Sometimes, a curtailment is the only solution; or perhaps running a bus empty halfway along the route to regain its "slot" . . . it's never ideal, but in the overall picture, perhaps the "least worst" option.