I've had so many Drobo problems including times when all drives go red and I've had to initialize and copy all the data back. So yes, when nothing else works, I guess rebuilding the array is all you can do. I've had similar issues occur for no apparent reason, in what I would consider a hardware failure. This happened another time after a power outage during nighttime where I think it was doing a scheduled backup while the UPS ran out. One time I was able to get it all fixed by some series of removing one drive and restarting it. I don't recall exactly the sequence of events. But I assume Drobo support had you try that.
BTW... This is why I've moved on to Pegasus32 drives. I'm holding onto 2 Drobo's as backups to my 2 Pegasus32 drives. I no longer can count on Drobo.
Understanding my problem was quite different than yours, it sounds like you followed my steps just to see if a clean uninstall, reinstall helps you? And it did not. It didn't cause any change in behavior other than the OS now recognizing that something is wrong with the drive. And maybe that's a good thing. Curious, when you uninstalled dashboard, did you use the disk image's Uninstall option? Hopefully so.
Sorry for all the rambling above. I'm no expert and instead I just tinker with crap until I'm lucky. Understanding that, here's what I would do: Another unplug drive, uninstall DD, remove all residual files you can find (incl. .kext). But then one more thing... I would also move 2 drives in the Drobo unit before I reconnect it. This should make it look and feel like a new Drobo and therefore I would expect the Dashboard to walk your through how to build a new array. But - I'm no expert and you're in uncharted territory. You may instead prefer to just try the initialize as you suggested. Good luck.