I believe it can also adjust the production rate down, if needed.

I hear a lot of doom and gloom about production rates skyrocketing... something doesn't sound right. I believe that as long as people are making money they will continue to mine, right? And if not, they will stop and the difficulty will reduce? Maybe the point here, is that if it does continue at this rate, with this next generation of miners, sounding obsolete before they have produced... it might be better to wait for the next round of ASICS (or whatever technology usurps it.. quantum? LOL)

/4