I'm not an expert, but I here's my opinion:
Yes, bandgap arises from the bragg reflections at the zone boundary. the traveling wave becomes a standing wave - I agree. How is this possible? The mathematical definition of traveling wave is: Amplitude * cos( k * x - omega * t), where k is the wavevector of the wave, omega is its characteristic frequency, x and t are spatial and time coordinates. When traveling wave suffers a reflection off the zone boundary there's an equal but opposite traveling wave (reflected part). By superposition then, the total k of the wave is zero - hence standing wave.