Wouldn't that mean that both Buffy and Kendra would have needed to die before Faith was activated? Meaning Buffy needed to die a 2nd time while Kendra was a slayer.
No, not before Buffy died in 'The Gift'. Before 'The Gift', the line ran normally - or as normal as you can get when the Slayer who died is actually still alive.
The theory - well, actually, there are many - goes that, when Willow resurrected Buffy, she some how reinserted Buffy into the Slayer line, meaning that Buffy's death would activate a new Slayer. This was the 'problem' in the Slayer line that Beljoxa's Eye said The First exploited.
Now, whether that means there are now - or were - two Slayer lines (one that runs/ran through Buffy, one that runs/ran through Faith) meaning that there will always be two Slayers, or Buffy has taken Faith's place in the line, making FAITH the 'extra' Slayer, rather than Buffy, because Willow pulled the power out of Faith, or that BOTH Slayers deaths will activate a new Slayer, and THEN the other one becomes the 'extra'.
There's also a theory that Buffy's death in 'The Gift' DID activate a new Slayer, we just didn't see her until S7 - Amanda. There was a lot of speculation at the time of S7 that Amanda had WAY more skill and ability than the other Potentials, considering she'd never been trained. This theory would mean that the glitch that The First exploited was actually Buffy's resurrection, rather than her reinsertion into the Slayer line.
Not really sure which theory I buy into - two Slayer lines, probably. I don't like the idea that Willow pulled something away from Faith to give to Buffy, however unintentionally.