I just wanted to share how excited I am that I finally found something to get rid of the "bulge"......at least the bulge in the cake! For fondant cakes, I used Toba Garrett's cake spackle method, and the imperfections just did not shine through at all...the fondant looked pretty smooth.
I wish I would have tried this earlier in the season! I just posted a photo of the latest fondant cake I did....it was very very simple, but it did not have a bulge! YAY!!!
Anyway, cake spackle consists of cake crumbs, buttercream, and a tsp or two of liqueur...mixed up, spread on the cake before the buttercream is applied. Then a very thin layer of white buttercream, and then the fondant.
Just had to share the success!! 
It does work wonders!! The liqueur is just to get the crumbs smoother and it gives a good taste. I just put the spackle on the cake first, and then I put a crumb coat of buttercream. I am not sure if this would work for regular buttercream at all...but it's worth a try one day. I don't have any measurements on it...I'm sure there is a guide, but I just sort of guesstimate what it should be. I think it can be found in toba's book.
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