Collection admin should have all privileges to all the items in the collection if granted in the configuration file. But she does not: if the collection admin tries to add a bitstream into an item with no bundles, she gets an error message: "You need the ADD & WRITE privilege on at least one bundle to be able to upload new bitstreams".
And really, in AddBitstreamForm.java there is a comment:
// If the bundle does not exist then you have to be supper admin to be able
// to upload to this bundle because at upload time the bundle will be created but
// there is no way anyone but super admin could have access to add to the bundle.
Why is this so? Couldn't we only check whether the user is an item admin and if she is, give permission to add a bitstream?