I'm guessing Rudy was being sarcastic, given the fact that he is very clearly not a bust, he's European, and he was taken late in the draft because of perceived bust potential.
Yep.
There is a history of players who don't come from American colleges (mainly, but not only Europeans) getting taken later than what hindisght suggests.
I'm cherrypicking here, but here is a chronological list.
Kukoc (29), Nowitzki (9), Tony Parker (28), Marc Gasol (48), Giannis (15).
Even Pau at 3 doesn't look so good if you consider the players drafted before him were Kwame Brown and Tyson Chandler.
I don't have the time know to go in full length into this, but as far as my memory suggests there is indeed a trend.
One explanation for it would be that several of these players came out of obscure leagues (Giannis played in A2, Dirk in the Second Bundesliga). But there was until some years ago a prejudice against non-American players. That was the case in the 80s and the 90s, and it might still affect some of the lesser known prospects.